Vanguard Information Technology ETF Sees Inflows Amid Tech Pullback

Vanguard Information Technology ETF ( $VGT ) has fallen by 2.73% in the past week. It has experienced a 5-day net inflow of $18.94 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation shares slipped around 4% over the week, but analysts frame the pullback as a “buy the dip” chance amid huge AI momentum. At GTC 2026, Nvidia projected about $1 trillion in revenue from its next‑gen Blackwell and Rubin chips through 2027, and Wall Street’s Strong Buy consensus points to roughly 57% upside from current targets.

  Analysts see upside to data‑center forecasts through FY28, helped by products like NVLink that could add tens of billions in sales, leaving the stock at only about 13x bull‑case earnings. Regulatory and export‑control headlines, including a Super Micro smuggling probe and scrutiny of Nvidia’s Groq deal, are being watched closely but have not shaken the bullish long‑term AI thesis.

• Apple Inc is enjoying a notable rebound in China, where iPhone sales jumped 23% in the first nine weeks of the year, far outpacing a shrinking smartphone market. CEO Tim Cook’s high‑profile visit to mark Apple’s 50th anniversary and the rollback of U.S. tariffs on Chinese imports are reinforcing the company’s commitment to its second‑largest market.

  To cement share, Apple cut App Store commissions in mainland China, accepting some margin pressure while keeping iPhone prices steady. App Store growth has cooled to about 7% this quarter, but stronger‑than‑expected production of roughly 52 million iPhones signals solid demand, and analysts maintain a Moderate Buy rating with about 22% upside to the stock.

• Microsoft continues to invest heavily in cloud and AI infrastructure while recalibrating how it builds data centers, dropping nondisclosure agreements with local communities to ease opposition and improve transparency. The shift briefly weighed on the shares, though Wall Street still sees more than 50% upside based on a Strong Buy consensus and an average target near $591.

  On the consumer side, performance gaps between Xbox Series X and Series S highlighted by the game Crimson Desert are raising questions about the lower‑end console’s longevity, even as Microsoft pushes to grow its gaming presence in Japan. Security issues remain a watchpoint after renewed attention on a SharePoint vulnerability, but investors still view Microsoft as a core AI and software holding in a volatile tech tape.