Vanguard S&P 500 ETF Sees Inflows Amid AI Leaders

Vanguard S&P 500 ETF ( $VOO ) has risen by 0.42% in the past week. It has experienced a 5-day net inflow of $4.11 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation heads into its February 25 fiscal Q4 report with expectations of about 70% earnings and revenue growth, supported by its 80%+ share of data‑center AI GPUs and hyperscaler capex that could reach $700 billion in 2026. Despite only modest gains so far in 2026 and some AI‑bubble worries, Wall Street keeps a Strong Buy view, with an average target near $265 implying roughly 40% upside from around $187.

  Analysts argue Nvidia’s valuations remain reasonable versus its surging forecasts, as incremental AI data‑center spending alone could underwrite a large slice of projected 2027 revenue and keep gross margins in the mid‑70% range. The stock is consolidating after a huge rally but is widely held by ETFs, index funds, and individuals, and many see the current sideways trading as a healthy pause before a potential breakout if management confirms durable demand and pricing power.

• Apple Inc has slipped about 4% year‑to‑date and faces headline risk from a West Virginia lawsuit over child‑abuse material on iCloud, yet analyst sentiment remains broadly constructive with a Moderate Buy rating and an average target around $307–$308, implying mid‑teens upside. The stock is also a key holding in diversified AI plays such as the Global X AIQ ETF, which offers investors a steadier way to gain AI exposure.

  The real focus is Apple’s long‑awaited AI push, centered on a revamped Siri and the broader “Apple Intelligence” platform now expected to roll out in stages through 2026. Wedbush’s Daniel Ives calls the recent selloff “unwarranted,” arguing that with 2.5 billion active devices Apple could add $75–$100 per share in value from AI monetization, including potential new subscription services, making the current weakness look more like an entry point than a structural setback.

• Microsoft shares are down roughly 10%–12% over the past month and slightly negative over the year, but analysts remain firmly bullish, citing what they see as decade‑low valuations versus the S&P 500 and a Strong Buy consensus with an average target near $594 and some calls up to $635. Recent investor‑relations meetings highlight Copilot as the main growth engine for M365 Commercial and emphasize that Azure growth is limited more by data‑center capacity than demand, with plans to double capacity by FY27 and protect margins via in‑house Maia chips and proprietary AI models.

  Beyond core software and cloud, Microsoft is also emerging as a dominant “anchor buyer” in carbon removals, locking in credits for over 52 million metric tons of CO2e, and it is a leading quantum‑computing play targeting commercially valuable machines by 2029. While old hardware issues such as the Xbox 360 “Red Ring of Death” resurfaced in the news, the market’s main narrative remains Microsoft’s drive to own AI‑driven enterprise workflows and sustainability themes, which many analysts see as strong support for long‑term investors despite recent volatility.