SPDR S&P 500 ETF Trust Sees Outflows Amid Solid Gains

SPDR S&P 500 ETF Trust ( $SPY ) has risen by 0.27% in the past week. It has experienced a 5-day net outflow of $16.92 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation spent the week back in favor with Wall Street as analysts argued that the AI chip leader’s slowing share price masks still-explosive fundamentals. Despite a roughly 30–35% year-to-date gain and a sideways trading pattern since summer, several top analysts now call the stock “unusually cheap,” noting its valuation has fallen to about 25 times forward earnings—near the low end of its 10‑year range and even at a discount to the broader semiconductor index. Nvidia remains the de facto standard for AI training and inference in data centers thanks to its full-stack approach in GPUs, networking, CUDA software, and vertical platforms, with a roadmap stretching from Hopper to Blackwell and Rubin that underpins a long-term AI opportunity management pegs at more than $500 billion. Recent news includes U.S. regulators clearing Nvidia’s planned $5 billion investment in Intel, which should expand manufacturing flexibility just as AI chip demand stays red-hot, and reports that Tencent is accessing Nvidia’s latest Blackwell chips through a Japanese cloud provider—highlighting both Nvidia’s global reach and potential regulatory flashpoints. Ownership data show the stock is now a core holding across Vanguard funds and major ETFs, while Nvidia’s AI push is expanding into healthcare, robotics, and autonomous driving, all supported by a cash-rich balance sheet. Across the Street, roughly 40 analysts rate the shares a Strong Buy, with average 12‑month price targets around $259–$260 and some as high as $350, implying about 40–90% upside from current levels.
• Apple Inc drew fresh attention as analysts raised price targets and leaned into a multi-year iPhone “super-cycle,” even while the company adapts to tougher regulation. Morgan Stanley lifted its target to $315 and Jefferies to about $283, citing Apple as a key product‑cycle winner through 2026 on the back of robust demand for the iPhone 17—especially in China, where November growth is estimated above 40% year over year. Forecasts now call for double‑digit EPS growth in FY26, aided by higher average selling prices and a richer mix of premium models, even if unit growth moderates later as the base gets larger. Strategically, Apple is doubling down on its flagship franchise with plans to expand the iPhone lineup from five to at least seven models by 2027, including its first foldable in 2026 and a special 20th‑anniversary edition with a new curved, bezel‑free design; analysts expect potential $100 price hikes on Pro models to offset surging memory and chip costs and keep margins firm. At the same time, Apple is feeling the regulatory heat: in Japan it is opening iPhones to alternative app marketplaces and lower commissions under the new Mobile Software Competition Act, a move that could gradually chip away at App Store profits but also reduce antitrust risk. Overall, Wall Street’s view remains cautiously positive, with a Moderate Buy consensus, an average 12‑month target around $299–$300 pointing to roughly 9–10% upside, and the stock already up high single digits this year as investors position for new iPhone form factors and continued premium pricing power.
• Microsoft remained a central play on the AI boom this week, even as its aggressive push into artificial intelligence stirs controversy among consumers and inside the company. On the consumer side, Microsoft’s Copilot AI assistant is being embedded into LG smart TVs; early backlash over the feature not being removable prompted LG to promise users will be able to delete the shortcut icon, easing privacy concerns and helping the stock edge higher. In gaming, Microsoft quietly skipped its usual “Xbox Wrapped” year-in-review, with reports suggesting resources are being redirected to large-scale celebrations tied to Xbox’s 25th anniversary in 2026, when investors expect fresh catalysts for its gaming ecosystem. Internally, CEO Satya Nadella is said to be demanding executives fully commit to an AI‑first transformation or step aside, as the company restructures around AI platforms and its OpenAI partnership—an intense cultural shift that some long-time leaders find daunting but that shareholders largely welcome as evidence of focus and urgency. Despite these frictions, sentiment on the stock remains strong: after a high single-digit gain over the past year, analysts maintain a Strong Buy rating on Microsoft, and the latest average price targets near $632 per share imply roughly 30% upside, reflecting confidence that AI and cloud, supported by a powerful gaming and productivity software franchise, will continue to drive earnings and cash flow higher over the next few years.