Nasdaq NVDA Nvidia

The craze around artificial intelligence (AI) has sent shares of several companies soaring this year. Nvidia (NASDAQ: NVDA) is one of the foremost examples of this trend -- shares of the semiconductor giant have jumped a whopping 180% so far in 2023.

The artificial intelligence (AI) wars are heating up. Software companies are battling it out for consumers' attention, but hardware giants are also jostling for position in what could become a multitrillion-dollar revolution for global data centers.

Below is Validea's guru fundamental report for NVIDIA CORPORATION (NVDA). Of the 22 guru strategies we follow, NVDA rates highest using our Quantitative Momentum Investor model based on the published strategy of Wesley Gray. This momentum model looks for stocks with strong and c

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A few months ago, most investors feared having too much exposure to equities. Now many are worried they may not have enough.

Technology can be a challenging industry to invest in over the long term because of the constant innovation that threatens market leaders. However, it's not impossible. I've searched far and wide to identify a basket of dominant tech leaders that are best at what they do and aren

The artificial intelligence (AI) market is heating up, and some have estimated that AI-powered services could reach a staggering value of $14 trillion by 2030. The technology's capabilities are already integrated into many services, including cloud computing and online search, an

For most investors, a few hundred bucks isn't a make-or-break amount of money. When you're talking about a few thousand bucks though, things change. It can take a while to save up that sort of cash stash. As such, it really shouldn't be squandered. That's particularly true when y

Nvidia's (NASDAQ: NVDA) explosive growth in its data center segment recently overtook gaming as the company's largest source of revenue. But gaming is still a large business, generating a third of Nvidia's total revenue in the most recent quarter. With over 1.7 billion PC gamers

Investing in AI stocks is the latest trend, but it's not for every investor. Over the past few years, investors (including myself) have been burned by hot trends like work-from-home or metaverse-focused stocks and sustained painful losses from some companies.

Artificial intelligence (AI) is expected to become big business in the long run, with Bank of America estimating that the proliferation of this technology could add $900 billion to the global economy by 2026. That figure is expected to balloon to a whopping $15.7 trillion by 2030

The hype around artificial intelligence (AI) stocks has reached a fever pitch.

Markets tried to find a direction to end the trading week. Despite the Federal Reserve declaring that more interest rate hikes are coming, possibly as early as July, FOMO took center stage. That’s causing even institutional investors to move cash off the sidelines. But investors

You often hear investors talk about looking for high-quality companies to invest in, but what does "high quality" mean in reality? There are different ways of defining quality, but BlackRock's ( NYSE:BLK ) iShares MSCI USA Quality Factor ETF ( BATS:QUAL) has its own criteria, and it uses this as the basis for its investments. How does it work, and has seeking quality paid off over time for investors? What Does the QUAL ETF Do? QUAL is a large $31 billion ETF from BlackRock’s iShares that invests in mid and large-cap U.S. stocks that “exhibit positive fundamentals, including high return on equity, stable year-over-year earnings growth, and low financial leverage.” Its underlying index is the MSCI USA Sector Neutral Quality Index iShares says that QUAL screens for return on equity to find profitable companies, low earnings variability so that it is investing in stocks with stable earnings, and low debt-to-equity ratios to ensure that it is investing in stocks with low leverage. These all seem like sensible screens and good ways to weed out many of the market's lower-quality stocks. QUAL's Holdings QUAL’s purpose is to find and invest in companies with high-quality characteristics, so it’s no surprise that its portfolio is comprised largely of companies most investors typically think of as blue-chip stocks. The fund is very diversified and holds 126 different positions. Holdings are capped at 5% and rebalanced semiannually to ensure that the fund remains sufficiently diversified. Furthermore, its top 10 holdings account for just 38.6% of assets. Below is an overview of QUAL’s top 10 holdings using TipRanks’ holdings tool. Nvidia ( NASDAQ:NVDA ) is the toast of the town in the investing world these days thanks to its key role in the rise of artificial intelligence (AI), so it’s unsurprising that it's QUAL’s top holding with a weighting of 5.9%. After Nvidia, tech giants Microsoft ( NASDAQ:MSFT ) and Apple ( NASDAQ:AAPL ), the two most valuable companies in the world by market cap, are QUAL’s next two largest holdings. However, QUAL isn’t simply a large-cap tech ETF -- within the top 10, you’ll also find healthcare companies like Eli Lilly ( NYSE:LLY ), global payment networks Visa ( NYSE:V ) and Mastercard ( NASDAQ:MA ), and even an oil major, ConocoPhillips ( NYSE:COP ).  Indeed, the fund is well-diversified across sectors, with the top sector, information technology, accounting for a 29.65% weighting, followed by healthcare (13.1%) and financials (11.74%). All other sectors have less than a 10% weighting. Information technology currently makes up a larger portion of the fund due to the rallies that its top holdings (tech stocks like Meta, Nvidia, Microsoft, and Apple) have seen in 2023. BlackRock’s definition of high quality seems to correlate well with TipRanks’ Smart Scores. The Smart Score is TipRanks’ proprietary quantitative stock scoring system. It gives stocks a score from 1 to 10 based on eight market key factors. The score is data-driven and does not involve any human intervention. Eight of QUAL’s top 10 holdings have Smart Scores of 8 or above, led by Nvidia, which boasts a 'Perfect 10' rating. QUAL stock itself has a Smart Score of 8 out of 10. Another nice thing about QUAL is that while it focuses on blue-chip investments, it isn’t paying an egregious valuation for them. The ETF’s average price-to-earnings ratio is 17.8, which is actually a slight discount to the S&P 500.  Lastly, the fund deserves credit for its tax efficiency -- it has never had to pay a capital gains distribution over the years. Dividend and Fees QUAL pays out a dividend that currently yields 1.3%. This isn’t a dividend yield that really stands out in the current market environment, but it helps to add to total returns over time. The ETF also features a reasonable expense ratio of 0.15%.  Solid Past Performance The efficacy of QUAL’s strategy seems to be borne out in its results. As of the end of the most recent quarter, it boasts double-digit annualized total returns over both a three and five-year basis, with annualized returns of 17.0% and 10.2% over each of those timeframes, respectively. Since its inception in 2013, the fund has returned a solid 11.6% on an annualized basis.  Is QUAL Stock a Buy, According to Analysts? Analysts are relatively bullish on QUAL. It enjoys a Moderate Buy consensus rating from analysts, and the average QUAL stock price target of $144.62 implies upside potential of 8.3%. Of the 1,617 analyst ratings on QUAL, 61% are Buys, 33.3% are Holds, and 5.7% are Sells.  Investor Takeaway: Does Quality Matter? You can't really argue with the type of results that QUAL has produced for its investors, and you could certainly have done a lot worse than investing in QUAL over the years with many of the other ETFs out there. Double-digit annualized returns over the long term are nothing to complain about. On the other hand, despite its rigorous approach to screening for quality, QUAL's total returns are not all that different from those of a broad-market S&P 500 ( SPX ) ETF like the Vanguard S&P 500 ETF ( NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust ( NYSEARCA:SPY) which both slightly outperformed QUAL over the same three- and five-year time frames. As of the end of the most recent quarter, VOO posted total annualized returns over the three- and five-year time periods of 18.6% and 11.1%, respectively, while SPY had returns of 18.5% and 11% over the same periods. These ETFs both outperformed QUAL over the past three and five years despite their simple strategy of just investing in the S&P 500 without running additional screens for quality. Further, the Invesco QQQ Trust ( NASDAQ:QQQ) , which invests in the Nasdaq 100 Index ( NDX ), has returned 19.8% and 15.7% over the past three and five years, respectively. Below, you can check out a comparison of these four ETFs using TipRanks' ETF Comparison Tool, which is customizable and allows users to compare up to 20 ETFs at once across a variety of factors. None of this is to say that there is anything wrong with QUAL. It is a good ETF that has helped its investors to compound wealth over time. Past performance is no guarantee of future results, so it's also possible that QUAL could outperform these peers in the future. Additionally, QUAL's screens for low leverage and earnings consistency could help it to gain a leg up on the competition in the event of a recession. However, It's just worth pointing out that there are other major, well-known ETFs that have generated even better results with less complex strategies. Note that VOO (0.03%) and SPY (0.09%) have lower expense ratios than QUAL, while QQQ comes in a bit higher (0.2%). These ETFs also end up overlapping quite a bit, as the top stocks in QUAL's high-quality index are also among the largest S&P 500 and Nasdaq stocks by market cap, so the same names like Nvidia, Apple, and Microsoft account for large positions in all four ETFs. Disclosure

A few months ago, most investors feared having too much exposure to equities. Now many are worried they may not have enough.

The S&P 500 ended lower on Friday, weighed down by Microsoft and other market heavyweights as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes.

The S&P 500 ended lower on Friday, with Microsoft dipping, as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes.

Artificial intelligence (AI) is generating a lot of hype, but early signs are beginning to emerge that this is no mere stock market bubble but a sea change that will produce tangible economic results. Goldman Sachs ( NYSE:GS ) believes that AI could increase productivity by 1.5% per year for the next decade and boost the S&P 500’s ( SPX ) profits by 30% over the same time frame. Earlier, the renowned investment bank predicted that generative AI (more on this shortly) could help to lift global GDP by 7%, or $7 trillion, over the next decade. A great way to invest in this emerging megatrend is through ETFs. Here are two under-the-radar AI ETFs that take interesting approaches to the space. Both are fairly new and are relatively small in terms of assets under management, and both could be hidden gems for investor portfolios.  1. Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT) CHAT is the world’s-first ETF focused specifically on generative AI, the technology that Goldman Sachs hailed as having the capability to increase GDP. Roundhill explains that generative AI is AI that can create new and unique content, such as images or text, by “learning patterns and structures from existing data.” Generative AI differs from generalized, traditional AI “in its ability to create new, unique content, rather than just analyzing or processing existing information.” Examples of generative AI you may have seen or experienced would be asking ChatGPT to write a poem or story for you or creating an image seemingly out of thin air with Dall-E. Adobe ( NASDAQ:ADBE ) is now incorporating AI into its core Photoshop and Illustrator products with Firefly, its creative generative AI engine that allows users to describe the images they want to generate using text.   As such, it’s no surprise that Adobe makes up a 5.2% weighting in the CHAT ETF. Overall, CHAT has 35 holdings, and its top 10 positions account for 56.1% of the fund. Below, you can take a look at CHAT’s top 10 holdings using TipRanks’ Holdings Tool. Nvidia ( NASDAQ:NVDA ) is CHAT’s top holding, which makes sense as Nvidia’s semiconductors are powering today’s generative AI applications. Beyond these names and other mega-cap tech names like Microsoft ( NASDAQ:MSFT ) and Alphabet ( NASDAQ:GOOGL ), CHAT casts a wide net in looking for generative AI names. It owns quite a few Chinese companies that are making advances in AI, from stocks that are well-known to Western investors like Baidu ( NASDAQ:BIDU ) and Tencent ( OTC:TCEHY ), to more under-the-radar names like iFlytek Co. and SenseTime Group. These types of stocks are stocks can be difficult for retail investors to access, so it’s nice to have the option to be able to gain exposure to them through CHAT.  We first covered CHAT last month when it launched and had under $2 million in assets under management (AUM). Now, just a few weeks later, CHAT has grown to over $66 million in AUM. While this is still relatively small in the world of ETFs, it shows that CHAT is garnering momentum. The only downsides to point out about CHAT is that it is a new, small ETF without a proven track record, and it has a relatively high expense ratio of 0.75%.   Nonetheless, CHAT looks like an interesting option for investors thanks to its unique, undiluted focus on generative AI and its portfolio that goes off the beaten path to find these generative AI companies. Also, it has an ETF Smart Score of 8 out of 10. The Smart Score is TipRanks’ proprietary quantitative stock scoring system. It gives stocks a score from 1 to 10 based on eight market key factors. The score is data-driven and does not involve any human intervention. Is CHAT Stock a Buy, According to Analysts? Analysts view CHAT as a Moderate Buy. Over 75% of the ratings on CHAT are Buys, 21.8% are Holds, and just 2.8% are Sells. It should be noted that the average CHAT stock price target of $31.55 represents only 4.9% upside potential, reflecting the fact that the price of CHAT has run up over 15% since its launch just a month ago. 2. WisdomTree Artificial Intelligence & Innovation Fund (BATS:WTAI) Like CHAT, the WisdomTree Artificial Intelligence & Innovation Fund is a relative newcomer to the world of ETFs, launching in December 2021. It's larger than CHAT, with nearly $100 million in AUM, and it has a comparatively lower expense ratio of 0.45%.   While WTAI isn’t exclusively focused on generative AI like CHAT, it takes a comprehensive approach toward investing across the space as a whole, including AI software, semiconductors, hardware (which includes things like drones, autonomous vehicles, and industrial automation), and innovation, which WisdomTree describes as any application of AI technology disrupting existing industries.  WTAI is more diversified than CHAT, with 79 holdings, and its top 10 holdings make up just 20.9% of the fund. Below, you can get an overview of WTAI’s top 10 holdings. Like CHAT, WTAI’s top position is Nvidia, although with a smaller 2.55% weighting. Nvidia competitor Advanced Micro Devices ( NASDAQ:AMD ) is the fund’s second-largest holding, and the semiconductor space is well-represented throughout the top 10 with these names plus Taiwan Semiconductor ( NYSE:TSM ), Synopsys ( NASDAQ:SNPS ) and Cadence Design Systems ( NASDAQ:CDNS ).  Like CHAT, WTAI isn’t afraid to go off the beaten path and go international in its search for AI leaders, with top 10 positions in Taiwan’s Alchip Technologies and Switzerland’s STMicroelectronics NV ( NYSE:STM ). WTAI also has positions in the mega-cap tech names that are pushing advances in AI, like Microsoft, Alphabet, and Meta Platforms ( NASDAQ:META ). WTAI has a Neutral ETF Smart Score of 7, one point lower than CHAT. Is WTAI Stock a Buy, According to Analysts? WTAI is viewed as a Moderate Buy by analysts, and nearly 70% of analyst ratings on the ETF are Buys. The average WTAI stock price target of $21.09 is just 7.7% above the ETF’s current price, reflecting the fact that the ETF has gained nearly 40% year-to-date. Investor Takeaway  AI and generative AI will have a long-term impact for years to come, and this is the type of secular trend that I personally want to invest in. I like CHAT because of its unique, laser-like focus on generative AI, as well as the fact that it leaves no stone unturned in its hunt for AI stocks. I like WTAI for its comprehensive, all-encompassing approach to AI innovation. Therefore, both ETFs look like intriguing options for investors who want to add exposure to their portfolios. Disclosure

U.S. stocks were mixed on Friday, while Nvidia hit a record high, as signs of easing price pressures and slowing economic growth fueled expectations the Federal Reserve is nearing the end of its aggressive interest rate hikes.

U.S. stock indexes were subdued on Friday, but on course for weekly gains as signs of easing price pressures and slowing economic growth fueled hopes the Federal Reserve was nearing the end of its monetary tightening campaign.