Vanguard Information Technology ETF Continues to Outperform
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Source: Fool
- Tech Sector Recovery: Since the beginning of 2023, the Vanguard Information Technology ETF (VGT) has achieved a total return of 28.6%, surpassing the energy sector's 26.8% and the S&P 500's 11.3%, indicating a robust recovery in tech stocks and a resurgence of investor confidence.
- Semiconductor Industry Surge: Semiconductor and related equipment companies now constitute 43.6% of the Vanguard ETF, with their market value exceeding that of the healthcare and industrial sectors combined, highlighting the growing significance of this industry as a core driver of ETF performance.
- Market Cap Growth of Giants: Nvidia's market cap skyrocketed from several hundred billion dollars at the end of 2022 to over $5 trillion today, while Broadcom and Micron Technology have joined the $2 trillion and $1 trillion clubs respectively, showcasing the strong growth potential of the semiconductor sector.
- Significant Investment Value: The Vanguard Information Technology ETF boasts an expense ratio of just 0.09%, compared to 0.03% for the Vanguard S&P 500 ETF, meaning investors incur only an additional 60 cents in fees annually for every $1,000 invested, making it an ideal choice for risk-tolerant investors.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 224.360
Low
200.00
Averages
264.97
High
352.00
Current: 224.360
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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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- Stock Price Expectation Pressure: Despite Nvidia's first-quarter results exceeding expectations, the stock price has stagnated, partly due to overly high market expectations for future growth, necessitating shareholders to prepare for serious market evaluations and perfection expectations.
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- Market Uptrend: The S&P 500 index rose 0.13% to 7,609.78, marking another record close, which showcases investor optimism regarding economic recovery, particularly against the backdrop of a stable job market.
- Positive Job Data: The JOLTS report revealed a 4.6% increase in job openings in April to 7.6 million, the highest in nearly two years, indicating labor market stability despite AI-related layoffs, which may prompt the Federal Reserve to consider interest rate hikes to combat inflation.
See More
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- Deepening Partnership with Nvidia: The ongoing collaboration with Nvidia enhances CoreWeave's technological capabilities and market competitiveness, positioning it as a leader in the rapidly evolving AI infrastructure sector.
- Capex and Debt Pressure: Despite the optimistic growth outlook, rising capital expenditures and debt levels could pressure margins, necessitating caution from investors when evaluating its stock.
- Intense Market Competition: CoreWeave faces fierce competition in the AI infrastructure space, and while it is regarded as an
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- Scout Personal Assistant: Microsoft launched the Scout personal assistant as an autonomous background application that automatically manages scheduling and meeting coordination within the Microsoft 365 ecosystem, enhancing work efficiency and reducing user intervention.
- Quantum Computing Advancement: Microsoft unveiled the Majorana 2 quantum chip, featuring a 1,000-fold improvement in reliability over previous qubits, with expectations to achieve a scalable quantum computer by 2029, significantly shortening its original timeline.
See More
