Vanguard Information Technology ETF Sees Outflows Amid Tech Volatility

Vanguard Information Technology ETF ( $VGT ) has risen by 3.78% in the past week. It has experienced a 5-day net outflow of $80.04 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation remains in the spotlight as “Big Short” investor Michael Burry increases his long-dated put positions, arguing the stock is overvalued after its huge AI-driven rally. At the same time, Nvidia is locking in the AI supply chain with a $2 billion investment and multibillion-dollar purchase deal with Lumentum, securing key photonics components through 2028 and underscoring both strong demand and rising execution risk.
• Apple Inc is holding up strongly in a weak smartphone market, growing Q1 shipments 5% and securing a 21% global share despite memory shortages and war-related demand pressure. Analysts see the iPhone maker as relatively insulated thanks to its premium positioning and tight supply chain, and maintain a Moderate Buy view with consensus targets pointing to mid‑teens percentage upside from current levels.
• Microsoft shares are down about 23% year-to-date as investors question the payoff from roughly $37.5 billion in quarterly AI capex and digest slightly slower 39% Azure growth plus fresh U.K. regulatory scrutiny. Yet the stock now trades at about 23x forward earnings, backed by a $625 billion revenue backlog and strong analyst conviction, with a widespread Strong Buy rating and average targets implying roughly 56% upside as Microsoft refines its Copilot strategy and courts gamers ahead of the next Xbox cycle.