SPDR S&P 500 ETF Trust Sees Strong Inflows, Solid Gains

SPDR S&P 500 ETF Trust ( $SPY ) has risen by 0.80% in the past week. It has experienced a 5-day net inflow of $6.21 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation stayed firmly in the AI spotlight this week, with Wall Street reinforcing its view of the chipmaker as a core way to invest in the AI boom. Wedbush’s Dan Ives sees a base-case share price of about $250 by the end of 2026, while other bullish targets run closer to $350, reflecting confidence that Nvidia’s dominance in AI GPUs and software will carry through the next wave of AI adoption. A major catalyst is the U.S. approval of H200 AI chip exports to China, which could reopen a critical growth market. At the same time, Nvidia is broadening beyond training chips into AI inference through a non‑exclusive licensing deal with startup Groq that may be worth up to $20 billion and brings Groq’s founder Jonathan Ross in‑house, strengthening custom chip and inference expertise. With analysts maintaining a Strong Buy rating and an average price target around $263.58—almost 40% upside after a roughly 40% year‑to‑date gain—the stock is widely seen as a high‑conviction AI holding, though expectations are elevated and any slowdown in AI spending could trigger sharp volatility.
• Apple Inc faced a mix of legal, regulatory, and market developments that could shape its earnings and long‑term business model. In the U.S., Apple avoided an immediate hit to its wearables revenue after a federal judge refused Masimo’s request to block imports of the Apple Watch Series 9 and Ultra 2 over a blood‑oxygen patent dispute, allowing Apple to keep selling the high‑margin devices while litigation continues; Apple has already pushed a software change that shifts some processing to the iPhone, a fix Masimo disputes. Abroad, Apple agreed to open up its iOS ecosystem in Brazil to settle an antitrust case, permitting third‑party app stores and alternative in‑app payments for at least three years—an early sign that regulatory pressure on its App Store fees may slowly reshape its services business. Meanwhile, fresh data from China showed foreign smartphone shipments, led by strong demand for Apple’s new iPhone 17 lineup, surged in November, suggesting the company’s position in this crucial market remains resilient despite local competition. Across Wall Street, AAPL retains a Moderate Buy consensus with an average price target near $299, implying roughly high‑single‑digit upside and reflecting confidence in its brand strength and ecosystem, even as legal and regulatory risks climb.
• Microsoft continued to be cast as one of the biggest potential winners of the AI cycle, but its huge spending plans and deep exposure to OpenAI are sparking debate among investors. The company is delivering strong growth—fiscal Q1 2026 revenue rose 18% year‑on‑year to $77.7 billion, with its Intelligent Cloud segment up 28% and Azure and other cloud services growing about 40%, while commercial contract backlogs climbed above $400 billion—driven by rising adoption of Azure and AI tools such as Copilot across its vast enterprise customer base. To support this momentum, Microsoft is ramping capital spending aggressively, with Q1 capex at $34.9 billion and plans to boost AI capacity by more than 80% this year and more than double its data‑center footprint over two years, underpinned by a tight partnership with OpenAI, including a roughly 27% stake and a $250 billion Azure commitment. Some investors warn this build‑out risks overcapacity and draws parallels with past infrastructure bubbles, and at least one high‑profile voice now rates MSFT a Sell. Even so, most analysts remain firmly positive: Microsoft carries a Strong Buy consensus and a 12‑month average target around $631—roughly 30% upside—suggesting the market largely believes its AI‑first strategy and integrated cloud ecosystem will turn today’s heavy investment into outsized long‑term returns.