Vanguard Information Technology ETF Sees Outflows Amid Tech Volatility

Vanguard Information Technology ETF ( $VGT ) has fallen by 2.02% in the past week. It has experienced a 5-day net outflow of $2.4 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation stayed at the heart of the AI trade this week, with Tigress Financial lifting its price target to $360 and highlighting record Q4 FY26 revenue of $68.1 billion, up 73% year over year, driven by its Data Center business and rapid adoption of its Blackwell and upcoming Vera Rubin platforms. Despite U.S. moves to tighten AI chip exports and security risks in the Middle East, Wall Street still sees Nvidia as the leading high‑beta play on a $3‑4 trillion AI infrastructure build‑out, with a Strong Buy rating, about 50%–53% implied upside and growing retail investor ownership.
• Apple Inc leaned aggressively into on‑device AI, rolling out M5‑powered MacBook Air, MacBook Pro and the low‑cost MacBook Neo alongside an iPhone 17e and faster iPad Air, prompting Wedbush and other bulls to set Street‑high targets of $340–$350 per share. Higher Mac prices to offset memory costs, plus evidence that nearly half of Mac buyers are new to the platform, have reinforced the view that Apple’s AI‑ready hardware refresh can spark a renewed upgrade cycle, even as the stock, rated a Moderate Buy, offers roughly mid‑teens to mid‑30% upside depending on the analyst.
• Microsoft faced short‑term pressure after unveiling “Project Helix,” a next‑generation Xbox designed to run both Xbox and PC games using AMD chips, with limited details and recent leadership turmoil dampening investor enthusiasm. At the same time, the company is pouring tens of billions into AI and cloud infrastructure, pushing 2026 capex toward $175–$185 billion and drawing scrutiny over margins, yet Azure growth near 38%–39%, products like Microsoft 365 Copilot and the in‑house Maia 200 AI accelerator underpin a Strong Buy rating and consensus price targets around $594, with bullish views stretching toward $678–$680 per share.