Nvidia Is Surging. Why That’s a Problem for a Tech ETF.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 21 2024
0mins
Should l Buy GS?
Source: Barron's
Tech ETF Rebalancing:
- The Technology Select Sector SPDR ETF was set to increase its holdings in Nvidia while reducing its Apple shares due to concentration limits.
- The fund faced an IRS issue regarding the concentration of individual positions exceeding 5% of assets.
- Nvidia's market cap surpassed Apple's on a key index rebalancing date, leading the fund to buy Nvidia shares and sell Apple shares.
- Investors' benefits depend on stock performance and market concentration levels.
Market Updates:
- S&P 500 hit another record, marking the 30th this year.
- Nvidia surpassed Apple and Microsoft in market cap but later slid during the week.
- Various financial updates including Treasuries, U.K. inflation, Bank of England rates, and stock market indices.
Corporate News:
- Apple winding down its buy-now, pay-later service.
- TDK claimed a breakthrough in solid-state batteries.
- FTC sued Adobe over subscription cancellations.
- Fisker filed for bankruptcy, Disney's Inside Out 2 success, and other corporate developments.
Business Deals:
- BlueTriton Brands merging with Primo Water.
- Shell acquiring Pavilion Energy from Temasek.
- Honeywell agreeing to purchase CAES Systems.
Upcoming Events and Reports:
- Earnings announcements by FedEx, Micron Technology, and Nike.
- Census Bureau's new residential sales data for May.
- BEA's release of personal consumption expenditures price index for May.
- ISM's Chicago Business Barometer for June.
- IMF estimate on global investment flows into the U.S., economic costs of mosquito-borne diseases, and CBO projections on U.S. government debt to GDP.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GS is 848.09 USD with a low forecast of 604.00 USD and a high forecast of 1048 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 928.750
Low
604.00
Averages
848.09
High
1048
Current: 928.750
Low
604.00
Averages
848.09
High
1048
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Macroeconomic Factors: While macroeconomic indicators such as inflation, interest rates, and GDP growth can impact the market, there are currently no signs of dramatic negative swings in these metrics, maintaining an optimistic market sentiment.
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- Earnings as a Driver: The ongoing growth in corporate earnings among Dow components indicates that if this trend continues, the index is likely to keep rising, reflecting strong fundamentals and bolstering market confidence.
- Macroeconomic Environment: Current macroeconomic indicators such as inflation, interest rates, and GDP growth show no signs of dramatic negative swings, providing a stable backdrop that supports the Dow's continued ascent.
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