Outline:
The Vanguard S&P 500 ETF ( $VOO ) has declined by 0.68% over the last seven days. It has seen a 5-day net inflow of $8.65 billion.
This is partly because of market sentiment regarding some of the ETF’s biggest holdings. For instance:
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- Nvidia Corporationmoves into 2026 as the market’s leading optionAI-Infrastructure play, with new signals indicating that demand for its GPUs is still strong instead of reaching a peak. TikTok’s parent company, ByteDance, is reportedly planning to spend approximately $14 billion on Nvidia AI chips in 2026, while Chinese technology companies have placed significant orders for H200 data-center processors after U.S. authorities approved exports, leading Nvidia to request TSMC to increase H200 production by mid-2026. Meanwhile, Nvidia is enhancing its technological advantage through a planned $20 billion acquisition of AI-chip startup Groq, which aims to complement its GPUs with Groq’s ultra-fast inference LPUs, and CEO Jensen Huang is expected to present advancements in data centers, robotics, and “physical AI” at CES 2026. Despite export-control and competitive risks, the stock has risen about 35% in 2025 and still holds a Strong Buy rating on Wall Street, with an average price target suggesting around 41% potential growth, reinforcing Nvidia’s position as a key holding for investors looking for direct exposure to long-term AI data-center spending.
- Apple IncContinues to be a key but increasingly disputed entry point into the digital realm, as it delves further into AI-powered hardware while dealing with emerging types of platform risks. OpenAI’s CEO, Sam Altman, is openly presenting ChatGPT as a long-term competitor to Apple’s iOS system, experimenting with an “app-free” model where users perform tasks within the chatbot rather than using conventional iPhone apps—an experience that remains somewhat awkward at present but highlights a challenge to Apple’s App Store fees and authority over services. Apple is countering by focusing on its devices-plus-services approach, with strong demand for the iPhone 17, rising high-margin Services income, and whispers of a premium AirPods Pro 3 version that includes infrared cameras and “Visual Intelligence” to support AI-driven environmental awareness and gesture controls. The stock has increased by more than 32% in six months and is valued at a high multiple of approximately 31x expected FY 2027 earnings, prompting some analysts, like Raymond James’ Srini Pajjuri, to remain cautious about the valuation even though the broader market maintains a Moderate Buy rating and an average target close to $299 per share—indicating roughly 9%–11% potential growth and suggesting Apple is viewed as a reliable, albeit no longer inexpensive, mainstay in the AI era.
- MicrosoftEnters 2026 with financial fundamentals that appear stronger than its recent 15% increase in stock price suggests, offering what many analysts consider a compelling opportunity for long-term investors. Following years of excitement driven by artificial intelligence, the stock’s valuation has gradually decreased to approximately 30 times forward earnings and around 11 times forward sales—near the lower end of its three-year range—despite revenue growing in the high teens and earnings rising by more than 20%. The primary concern remains a significant increase in spending: Microsoft has invested roughly $69 billion, or nearly a quarter of its revenue, into AI and cloud infrastructure, but a $392 billion commercial cloud backlog that has grown 51% year-over-year indicates that much of this capacity is already supported by committed demand. With Azure maintaining growth in the high 30s to 40s percent, margins still within the mid-to-high 40s range, and capital intensity expected to stabilize as AI projects transition from construction to monetization, Wall Street is largely optimistic: 32 out of 34 analysts rate the stock as a Buy, with an average price target of about $631, suggesting potential gains of roughly 30% to 33%. Widespread ownership by major funds and support from hedge funds strengthens the perception that Microsoft is entering a “harvest phase” of its AI investments, positioning the stock to possibly outperform the broader market in 2026 and beyond.