Vanguard Information Technology ETF Sees Inflows Amid AI Strength

Vanguard Information Technology ETF ( $VGT ) has risen by 0.51% in the past week. It has experienced a 5-day net inflow of $212.35 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation spent the week under the spotlight as the market weighed a brief pullback against an exceptionally strong AI story. Despite being up just 7% year‑to‑date after a 4% dip on technical selling, analysts remain overwhelmingly bullish, with 40 of 42 rating it a Buy and price targets around $274–$300 implying roughly mid‑30% upside.

  Top researchers see demand for Hopper and Blackwell chips outstripping supply through 2026 and highlight the coming Vera Rubin platform as a major leap that should fuel earnings and free cash flow, which BofA projects could exceed $400 billion in 2026–2027. Influential investor Oliver Rodzianko calls Nvidia a core winner of the first AI wave, arguing pauses in cloud spending are normal digestion rather than the end of the cycle and seeing around 20% upside over the next year.

• Apple Inc delivered record fiscal Q2 results, triggering one of its strongest share moves this year and cementing its status as a market leadership play. Revenue jumped about 16.5% to $111.2 billion, EPS rose 22% to $2.01, and iPhone 17 sales surged more than 20% to roughly $57 billion, with China revenue up 28% as the region rebounded.

  Despite rising memory costs tied to AI data centers, Apple expanded gross margin to 49.3% and guided June‑quarter revenue up 14%–17%, comfortably ahead of expectations. Wall Street’s stance is a Moderate Buy, with most top analysts lifting targets into the $310–$330 range and calling Apple a “thematic megacap winner,” pointing to strong free‑cash‑flow growth, robust Services momentum, and potential upside from WWDC and future foldable devices.

• Microsoft remained a key AI and cloud bellwether, but the story is shifting from aggressive feature rollouts to building “secure foundations” for frontier AI. The company is stressing Zero Trust security, multi‑factor authentication, and more careful testing to avoid missteps, while also rolling out a new Xbox Mode for Windows 11 to deepen its push into PC gaming and better compete with Valve’s Steam ecosystem.

  Financially, Microsoft just posted a strong quarter with $82.89 billion in revenue and $4.27 EPS, driven by Azure growth re‑accelerating to about 40% as AI demand rises. At the same time, management now plans roughly $190 billion in CapEx by 2026 to fund AI infrastructure, a spending surge that worries some investors but which bulls see as proof of durable demand. Analysts remain firmly positive with a Strong Buy consensus and an average price target near $554, implying roughly mid‑30% upside from current levels.