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iShares U.S. Technology ETF

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The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of U.S. companies in the technology sector. The fund is non-diversified.

Apple Inc

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Nvidia Corp.

Meta Platforms, Inc.

Broadcom Inc

Alphabet Inc.Class A

Adobe Inc

Salesforce Inc.

Advanced Micro Devices Inc.

Alphabet Holding Company Inc.

Oracle Corp.

International Business Machines Corp.

Palantir Technologies Inc.

iShares US Technology ETF

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With Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) set to report second-quarter earnings after the close today, <a href="https://www.benzinga.com/etfs">ETF investors</a> are looking for momentum signs, not only in revenue or profit beats, but in a story reset.
Analysts are forecasting that Google&#8217;s parent company will report <a href="https://www.benzinga.com/trading-ideas/previews/25/07/46561591/alphabet-google-q2-earnings-preview-market-expert-says-mag-7-stock-has-been-anything-but-magnificent">revenue of $93.72 billion and earnings per share (EPS) of $2.17,</a> both significantly above last year&#8217;s second-quarter numbers. If so, it would be the company&#8217;s 11th consecutive revenue beat and 10th consecutive EPS surprise, based on figures from Benzinga Pro.
But expectations extend beyond mere numbers this time around. With the stock flat year-to-date and about 11% down from all-time highs, market observers are hoping Alphabet can put regulatory concerns, AI doubt, and increasing CapEx fears behind it, and instead highlight growth in YouTube, Cloud and AI search.
Jay Woods, Chief Global Strategist at Freedom Capital Markets, stated that overall momentum remains skewed to the upside, and a strong earnings report could propel the market toward the $200 level (GOOGL is currently trading at $191.06).
That&#8217;s a chance ETF investors are watching.
Also Read: <a href="https://www.benzinga.com/news/25/07/46569664/how-to-earn-500-a-month-from-alphabet-stock-ahead-of-q2-earnings">How To Earn $500 A Month From Alphabet Stock Ahead Of Q2 Earnings</a>
<h2 class="wp-block-heading">ETFs With Alphabet Behind The Wheel</h2>
<ul class="wp-block-list">
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>): Alphabet is VOX&#8217;s second largest holding, accounting for more than 12% of the portfolio. If YouTube and Google Search are strong, this sector-specific ETF will be a winner. VOX has picked up in recent times as investors wagered on ad-streaming, subscription services, and digital media bouncing back, all niches where Alphabet is a dominant force. The fund is up almost 11% so far this year.</li>
<li>Fidelity MSCI Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>): A mirror of VOX in several respects, FCOM is another Alphabet-dominant fund (with an allocation of almost 13%) and offers more affordable exposure to the communications sector. It has been a favorite for those who wish to participate in Google&#8217;s media, mobile and AI plays without choosing individual stocks.</li>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>): The Nasdaq-100 behemoth tends to be the first to respond to Big Tech reports, and Alphabet&#8217;s report is no different. Alphabet, being in a top-10 position in the QQQ, can influence sentiment across the tech-heavy index, particularly if cloud and AI storylines gain momentum.</li>
<li>iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>): Though Alphabet is a communication services classification, its growing footprint in AI and cloud computes it increasing influence among tech-bias funds such as IYW. A stronger-than-expected performance might drive this ETF&#8217;s current rally, especially as investors reinvest in AI-exposed large-cap stocks.</li>
</ul>
<h2 class="wp-block-heading">The AI Laggard-To-Leader Pivot?</h2>
A few analysts believe Alphabet&#8217;s Q2 might be a pivot point as the market&#8217;s perception of its AI role shifts.
Raymond James analyst Josh Beck had an Outperform rating and a $185 price target going into the earnings release. &#8220;Bigger picture, we see the narrative potential shifting from AI Laggard to AI Leader and recommend long positions into GOOG and believe a few insightful comments from the management team,&#8221; Beck said, citing strength in search, cloud momentum, and cost discipline on AI infrastructure. 
Beck also pointed out that Alphabet&#8217;s 17.8x forward P/E ratio is at a discount to technology peers such as Meta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), implying upside for re-rating.
The firm&#8217;s &#8220;Made By Google 2025&#8221; event on August 20 may further fuel the bull case. Planned to introduce new Pixel phones, a refreshed Pixel Watch, and enhanced AI integration into Android, the event may further solidify Alphabet&#8217;s shift toward next-generation search and AI-first products.
All in all, still a good time for ETF investors to take advantage of the possible surge.
<h2 class="wp-block-heading">Last Word: ETFs Set For Action</h2>
As Alphabet&#8217;s results serve as a bellwether for overall tech sentiment, Tuesday&#8217;s earnings announcement has the potential to set off a domino effect across ETFs, particularly those front-loaded in communication services and large-cap growth.
In brief, this is not a mere earnings report. It&#8217;s a challenge to see if Alphabet can still search for momentum, and discover it.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/emerging-market-etfs/25/07/46577333/trade-war-or-trade-win-the-curious-case-of-surging-japan-etfs">Trade War Or Trade Win? The Curious Case Of Surging Japan ETFs</a></li>
</ul>
Image: Shutterstock

Specialty ETFs

ETFs

FCOM

Betting On A Post-Earnings Pop? These ETFs Have Alphabet Written All Over Them

A weakening U.S. dollar is discreetly helping <a href="https://www.benzinga.com/etfs">some ETFs</a> to outperform their size during this earnings season, particularly those comprised of globally exposed American titans. 
But before investors get caught up in the greenback-driven glow, experts caution: all that moves isn&#8217;t necessarily real growth.
Also Read:<a href="https://www.benzinga.com/markets/bonds/25/07/46488992/us-dollar-can-lose-its-supremacy-premium-if-fed-interferes-with-bond-market-currencies-are-release-valve-for-unsustainable-fiscal-policy"> US Dollar Can Lose Its &#8216;Supremacy Premium&#8217; If Fed Interferes With Bond Market: Currencies Are &#8216;Release Valve For Unsustainable Fiscal Policy&#8217;</a>
<h2 class="wp-block-heading">The Dollar&#8217;s Slump And The ETF Sweet Spot</h2>
The U.S. dollar has fallen about 10% this year, battered by trade policy whiplash, debt worries, and decelerating growth, per a Reuters report. That weakness has boosted foreign earnings for multinational U.S. companies, and by proxy, juiced the payouts of ETFs that own them.
Industry ETFs such as the Vanguard Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>), SPDR Industrial Select Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) and iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) are in the sweet spot. These funds allocate heavily to firms generating substantial revenue overseas, which are now profiting from favorable currency translation.
For instance, VCR component PepsiCo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) stated the dollar downturn assisted it in projecting a <a href="https://www.benzinga.com/markets/earnings/25/07/46463845/pepsico-delivers-the-fizz-in-q2-sweetens-outlook-on-subdued-dollar-headwind">less-than-anticipated annual profit decline</a>, the Reuters report noted. XLI component 3M (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>) reported a <a href="https://www.benzinga.com/markets/earnings/25/07/46491058/post-it-maker-3m-defies-tariff-headwinds-with-strong-q2-and-outlook-boost">profit beat in Q2 </a>with FX gains doing some heavy lifting.
<h2 class="wp-block-heading">Why the Market Isn&#8217;t Celebrating (Yet)</h2>
Even though FX is benefiting the bottom line, investors do not trust it. Wall Street typically discounts foreign exchange-driven earnings surprises as optical, not fundamental.
This is particularly applicable to ETF investors who might believe they&#8217;re surfing a trend, only to realize it&#8217;s all flash, no substance. Constant-currency beats, those FX-adjusted, tend to get more rewarded than FX-led ones, says Goldman Sachs.
What does it mean? Don&#8217;t expect a lift in earnings to be followed by a lift in ETF prices unless it&#8217;s preceded by actual demand growth.
<h2 class="wp-block-heading">When FX Becomes A Tailwind For ETFs</h2>
Still, the impact is real. Based on two decades of data, every 1% depreciation in the dollar improves S&amp;P 500 EPS growth by about 0.6 percentage points, according to LSEG data cited in the Reuters report. That's not nothing, especially for ETFs tracking international-facing sectors.
IYW has experienced indirect support from names like Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which generate over half of their revenues from international locations.
Even thematic ETFs such as the Invesco International BuyBack Achievers ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPKW#NASDAQ">IPKW</a>), which is skewed toward U.S. companies with aggressive foreign strategies, might gain if the dollar is weak.
<h2 class="wp-block-heading">ETFs To Watch If The Dollar Remains Soft</h2>
<ul class="wp-block-list">
<li>VCR (Consumer Discretionary): Large global brands such as Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Nike (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>), and Starbucks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>).</li>
<li>XLI (Industrials): High exposure to cyclical multinationals with international sales.</li>
<li>IYW (Technology): FX-bolstered cash flow machines such as Microsoft and Apple.</li>
<li>SPY / VOO (S&amp;P 500): Wide, but still ~38% international exposure.</li>
<li>IPKW/ iShares International Select Dividend ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IDV#BATS">IDV</a>): Dividend or buyback ETFs with heavy overseas tilts.</li>
</ul>
<h2 class="wp-block-heading">The Bottom Line</h2>
ETF holders could be quietly profiting from the decline of the greenback, but such gains can disappear as suddenly as they began. Most of these gains are less about consumer enthusiasm and more about currency arithmetic, and that makes all the difference when macro is choppy.
Appreciate the tailwind, by all means. But don&#8217;t confuse a currency flutter with a structural break.
Read Next:<a href="https://www.benzinga.com/etfs/specialty-etfs/25/07/46554173/trump-targets-chinas-backdoors-vietnam-and-mexico-etfs-could-pay-the-price"> </a>
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/07/46554173/trump-targets-chinas-backdoors-vietnam-and-mexico-etfs-could-pay-the-price">Trump Targets China&#8217;s Backdoors—Vietnam And Mexico ETFs Could Pay The Price</a></li>
</ul>
Image: Shutterstock

Currency ETFs

Forex

iShares Dow Jones International Select Dividend Income Fund

IPKW

NFLX

SBUX

Dollar Down, Multinationals Up: ETFs Riding The FX Wave

Billionaire Mark Cuban has sounded the alarm on the escalating artificial intelligence (AI) arms race, predicting a fierce battle among tech giants pouring over a trillion dollars into the industry.
What Happened: In a series of posts on X, Cuban warned that this massive AI investment will reshape intellectual property (IP) dynamics, declaring, &#8220;IP is KING in an AI world,&#8221; as companies scramble for dominance.
Cuban's first post on Monday highlighted the staggering financial stakes: &#8220;What people are missing about AI, IMO, is no company is going to spend what will end up being more than a trillion dollars and accept not being dominant. They will find a way to battle. I don't know how, other than to guess it will get ugly.&#8221;
This underscores his belief that the scale of investment, driven by firms like Alphabet Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) will fuel aggressive competition.
In another post, he elaborated on the strategies at play, as many firms are hiring talent and acquiring IPs to advance their models. He explained that these firms will start paying to lock up IP and the people who create the models to keep it away from their competitors.
Cuban advised creators to adapt, stating, &#8220;If you create valuable IP, Encrypt and silo it. Let companies bid on it. Or just use it for your own behind a paywall model.&#8221;
He also expressed disappointment about the end of the &#8220;publish or perish&#8221; era, explaining that now, when you publish, the value of your work fades because it's quickly used up by all the basic AI models. &#8220;It's now publish, and its value perishes, because it got eaten up by every foundational model,&#8221; Cuban said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">We are seeing them hire away talent and IP to build advance their models. But that's just the beginning. They will start paying to lock up IP they think their models need, and the people who create it, just to keep it away from their competitors. The days of publish or perish…
&mdash; Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1947126340005883947?ref_src=twsrc%5Etfw">July 21, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/crypto/cryptocurrency/25/07/46513468/bitcoin-miner-iren-could-surge-1572-as-sotp-valuation-pegs-300-target-hedge-fund-manager-eric-jackson-says-were-cooking-with-gas">Bitcoin Miner IREN Could Surge 1,572% As SOTP Valuation Pegs $300 Target — Hedge Fund Manager Eric Jackson Says, &#8216;We&#8217;re Cooking With Gas&#8217;</a>
Why It Matters: As the AI landscape evolves, Cuban's insights signal a transformative shift, urging stakeholders to safeguard their IP in this trillion-dollar showdown.
Here are some stocks to watch that have been spending on AI.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Stocks</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>24.65%</td>
<td>39.56%</td>
</tr>
<tr>
<td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>-13.40%</td>
<td>-5.71%</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>21.85%</td>
<td>15.15%</td>
</tr>
<tr>
<td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>2.68%</td>
<td>23.87%</td>
</tr>
<tr>
<td>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td>
<td>-2.46%</td>
<td>1.41%</td>
</tr>
<tr>
<td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td>
<td>17.53%</td>
<td>44.50%</td>
</tr>
<tr>
<td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>-13.09%</td>
<td>31.07%</td>
</tr>
</tbody>
</table>
</figure>
Meanwhile, here are some AI-linked exchange-traded funds which invest in both big and small companies scaling their businesses with AI.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>12.02%</td>
<td>18.34%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>10.26%</td>
<td>17.48%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>10.20%</td>
<td>33.78%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>11.89%</td>
<td>21.34%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>12.61%</td>
<td>14.93%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>15.25%</td>
<td>48.92%</td>
</tr>
<tr>
<td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#BATS">MAGS</a>)</td>
<td>5.59%</td>
<td>22.36%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Monday. The SPY was down 0.24% at $629.10, while the QQQ advanced 0.25% to $562.68, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46463595/dan-ives-picks-5-stocks-for-2nd-half-of-2025-nvidia-palantir-microsoft-and-more-golden-age-of-tech-is-here-with-ai-revolution" target="_blank" rel="noreferrer noopener">Dan Ives Picks 5 Stocks For 2nd Half Of 2025: Nvidia, Palantir, Microsoft And More: ‘Golden Age Of Tech Is Here With AI Revolution&#8217;</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Joe Seer / Shutterstock.com

MAGS

QTUM

Mark Cuban Says 'IP Is King In An AI World' As Tech Giants Pour In Trillions — Here Are Some Top AI Spenders' Stocks To Watch

BlackRock is recalibrating its investment strategy, moving away from traditional macro anchors towards &#8220;mega forces&#8221; like artificial intelligence, which they believe will be &#8220;durable drivers of returns&#8221; in both the near and long term.
What Happened: This shift is detailed in their latest commentary, which emphasizes a more tactical approach to investing in a world where long-term macro stability is diminishing.
The firm notes that while &#8220;long-term macro anchors markets have relied on for decades, like stable inflation and fiscal discipline, have weakened,&#8221; this doesn&#8217;t necessitate a reduction in risk-taking.
Instead, mega forces or AI-related investments offer a &#8220;new anchor for returns.&#8221;
<a href="https://www.benzinga.com/markets/equities/25/06/46068345/blackrock-bets-big-on-defense-companies-amid-escalating-geopolitical-tensions-palantir-lockheed-martin-northrop-grumman-among-stocks-in-focus">BlackRock</a> also highlights the role of &#8220;immutable economic laws&#8221; in limiting the pace of global change, such as the inability to rewire supply chains overnight and the reliance of U.S. debt sustainability on foreign funding.
This perspective keeps BlackRock &#8220;risk on and overweight U.S. equities.&#8221;
Despite recent U.S. stock gains driven by the AI theme and a backdrop of persistent sticky inflation, the firm sees &#8220;scope for overall corporate earnings to stay solid even if U.S. growth is dented by tariff-induced disruptions and corporate caution.&#8221;
See Also: <a href="https://www.benzinga.com/markets/hedge-funds/25/07/46290114/bill-ackman-bets-over-60-of-pershing-squares-portfolio-in-these-4-stocks-uber-hhh-and-more">Bill Ackman Bets Over 60% Of Pershing Square&#8217;s Portfolio In These 4 Stocks: UBER, HHH And More</a>
Why It Matters: BlackRock anticipates that sticky inflation will prevent the Federal Reserve from significant rate cuts, and high fiscal deficits in the U.S. may prompt investors to seek a greater term premium on long-term debt.
The firm stresses that in this volatile environment, &#8220;set-and-forget portfolios no longer serve investors well,&#8221; advocating for active management across asset classes.
&#8220;Greater dispersion in market and security returns means more opportunity to capture alpha,&#8221; they conclude, reinforcing their belief that mega forces or AI investments will be pivotal in driving future returns.
Here are a few AI-linked exchange-traded funds that investors could consider amid ongoing optimism about the sector.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>9.19%</td>
<td>11.00%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>7.44%</td>
<td>11.23%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>10.49%</td>
<td>28.91%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>10.06%</td>
<td>15.00%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>9.53%</td>
<td>6.96%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>12.05%</td>
<td>42.81%</td>
</tr>
<tr>
<td>Roundhill Magnificent Seven ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#BATS">MAGS</a>)</td>
<td>1.66%</td>
<td>12.74%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Tuesday. The SPY was up 0.11% at $621.36, while the QQQ advanced 0.26% to $553.47, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/07/46269226/stocks-just-hit-rare-golden-cross-for-1st-time-since-2023-heres-what-it-means-for-investors" target="_blank" rel="noreferrer noopener">Stocks Just Hit Rare Golden Cross For 1st Time Since 2023 — Here's What It Means For Investors</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 
Image via Shutterstock

BlackRock Shifts Gears, Declares AI The New 'Anchor For Returns' As Inflation Stays Sticky

Experts have been debating the artificial intelligence-driven impact on employment with contradicting views. While market veteran like Jim Cramer thinks that &#8220;AI is still not trusted,&#8221; others see trouble brewing in the labor market due to the automation of several human-led jobs.
What Happened: Citing the labor differential and unemployment rate data, Ark Invest&#8217;s Cathie Wood said in her &#8220;<a href="https://www.ark-invest.com/videos/market-commentary/july-2025-in-the-know-cathie-wood">In The Know</a>&#8221; series, &#8220;Labor differential says that it&#8217;s getting harder to find jobs,&#8221; while adding that &#8220;rising unemployment claims suggest that people who are out of work are finding it difficult to get a job.&#8221;
While she blames immigration for this, Wood also states that &#8220;we do know that AI is hurting entry-level jobs.&#8221;
Highlighting a personal example from the ARK 2025 Vibe Coding Hackathon, she said that her firm used AI to address 13 pain points within the organization.
&#8220;Because of (AI&#8217;s) natural language programming, SaaS is going to run into some trouble here, now that we can do a lot ourselves and customize to our own organization&#8217;s needs,&#8221; she explains.
On the other hand, CNBC&#8217;s Mad Money host Cramer took to X and underscored that traditional white collar firms haven&#8217;t seen AI-related job cuts.
&#8220;They are still hiring, still paying a lot. AI is still not trusted at the highest rungs of major companies,&#8221; he said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">CEOs have been saying that AI will wipe out jobs at their companies. But it hasn&#39;t happened at most traditional white collar firms. They are still hiring, still paying a lot. AI is still not trusted at the highest rungs of major companies
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1940680480380408248?ref_src=twsrc%5Etfw">July 3, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Meanwhile, taking a strong stand on this, economist Craig Shapiro warned that <a href="https://www.benzinga.com/markets/economic-data/25/06/46093421/ai-will-disrupt-25-of-us-jobs-by-2030-and-the-fed-cant-save-them-economist-warns">AI could wipe 25% of jobs in the U.S.</a> by 2030, and the Federal Reserve&#8217;s traditional tool of interest rate cuts is ill-equipped to address the looming labor crisis.
See Also: <a href="https://www.benzinga.com/markets/equities/25/07/46188237/bill-gates-is-betting-two-thirds-of-his-foundations-portfolio-in-these-3-stocks">Bill Gates Is Betting Two-Thirds Of His Foundation&#8217;s Portfolio In These 3 Stocks</a>
Why It Matters: Shapiro cites a Goldman Sachs study and explains that tech giants like Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) are investing billions in AI, which will potentially automate 25% of the U.S. labor market by 2030.
Furthermore, he says, "AI-driven labor displacement, accelerating in 2025, poses a structural crisis that Federal Reserve rate cuts cannot fix.&#8221;
Shapiro also outlines Federal Reserve Vice Chair Michael Barr&#8216;s 2025 warning: AI could increase the natural unemployment rate due to skill mismatches. A <a href="https://hbr.org/2015/08/research-technology-is-only-making-social-skills-more-important">Harvard study</a> supported this, estimating 47% of U.S. jobs are at risk. 
Price Action: Here are a few AI-linked exchange-traded funds that investors can consider amid the booming artificial intelligence demand.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>10.00%</td>
<td>12.38%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>8.40%</td>
<td>13.19%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>10.40%</td>
<td>27.93%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>10.94%</td>
<td>16.23%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>10.44%</td>
<td>8.71%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>13.52%</td>
<td>45.81%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: On the truncated trading day of July 3rd, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, scaled fresh records and ended higher. The SPY was up 0.79% at $625.34, while the QQQ advanced 0.98% to $556.22, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/25/07/46216283/dan-ives-urges-apple-to-make-a-move-saying-that-perplexity-acquisition-is-a-no-brainer-its-a-matter-of-when-and-not-if">Dan Ives Urges Apple &#8216;To Make A Move,&#8217; Saying That Perplexity Acquisition Is &#8216;A No-Brainer&#8217;: &#8216;It&#8217;s A Matter Of When And Not If&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Jim Cramer Contradicts AI-Led Job Cuts At White Collar Firms As Cathie Wood Says It's 'Hurting Entry-Level Jobs:' Here's How Experts Debunk AI's Impact On Employment

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk has recently become embroiled in a geopolitical subplot involving U.S. President Donald Trump, Chinese netizens and a new potential self-created political party. 
It sounds like something out of a science fiction political satire, but the consequences could be quite real for investors, particularly those holding <a href="https://www.benzinga.com/etfs">Tesla-loaded ETFs</a>.
As Musk engages in a heated exchange with Trump over the latter&#8217;s so-called One Big, Beautiful Bill, a broad policy package that Musk asserts will raise the U.S. debt ceiling by $5 trillion, investors might want to fasten their seatbelts. 
Not because Musk could start a new political party, but because the billionaire&#8217;s increasingly overt political tantrums might bring a different kind of headline risk into Tesla, and by extension, any ETFs that own it.
Also Read: <a href="https://www.benzinga.com/markets/tech/25/07/46215572/as-tesla-slides-below-1-trillion-analyst-warns-musk-trump-rift-could-undermine-autonomy-push-it-doesnt-make-any-sense-for-elon-to-be-fighting-with-donald-trump">As Tesla Slides Below $1 Trillion, Analyst Warns Musk-Trump Rift Could Undermine Autonomy Push: &#8216;It Doesn&#8217;t Make Any Sense For Elon To Be Fighting With Donald Trump&#8217;</a>
<h1 class="wp-block-heading">The Political Plot Thickens</h1>
In the newest installment in this long-running drama, <a href="https://www.benzinga.com/news/politics/25/07/46216023/after-trump-warns-elon-musk-to-close-up-shop-china-rallies-behind-worlds-richest-man-theres-no-need-to-keep-putting-up-with-it">Chinese Weibo users on social media</a>, basically China&#8217;s Twitter, have been coming out in support of Musk. The viral hashtag #MuskWantsToBuildAnAmericaParty has seen people expressing their ardent (albeit somewhat tongue-in-cheek) backing of the billionaire&#8217;s American politics vision.
Musk&#8217;s remarks weren&#8217;t solely directed at the bill; they were aimed at the politicians themselves. He <a href="https://x.com/elonmusk/status/1939776586989150590">stated on X</a> that Trump-supported legislators would lose their primaries &#8220;if it is the last thing I do on this Earth.&#8221; <a href="https://www.benzinga.com/markets/equities/25/07/46187311/trump-says-elon-musk-would-close-up-shop-and-head-back-home-to-south-africa-without-subsidies-no-more-rocket-launches-satellites-or-electric-car">Trump fired back</a>, writing on Truth Social that Musk &#8220;would probably have to close up shop and head back home to South Africa&#8221; had it not been for government subsidies.
<h1 class="wp-block-heading">So… Why Should ETF Investors Care?</h1>
Because Tesla is a darling of many broadly held ETFs.
Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>): Tesla ranks in the top 10 holdings.
ARK Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#BATS">ARKK</a>): Cathie Wood&#8217;s flagship fund is one of the most outspoken and exposed supporters of Tesla.
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>): Tesla&#8217;s inclusion in the S&amp;P 500 means even &#8220;safe&#8221; index funds have some stake in this game.
Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRIV#NASDAQ">DRIV</a>) and iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>): Thematic plays in which Tesla is a substantial drag.
With Musk&#8217;s political commentary ratcheting up and now going viral abroad, investors are concerned about how much his personal brand and capriciousness may put pressure on Tesla&#8217;s stock price.
<h1 class="wp-block-heading">Can This Spur An ETF Revamp?</h1>
A few industry observers are already wondering if Musk&#8217;s cantankerous ways might give rise to more specialized ETFs, either embracing the &#8220;Musk universe&#8221; or excluding companies with high CEO discretion risk. These could be a MUSK ETF, following companies headed by or owned by Elon Musk, including Tesla, Neuralink, SpaceX (through private equity surrogates), xAI, and even X-adjacent trades; or a Corporate Neutrality ETF, minus companies where executive conduct has become a source of stock-specific risk.
In a social media, a sentiment-driven market with the concept of &#8220;political volatility screening&#8221; in building ETFs may not be as outlandish as it appears.
<h1 class="wp-block-heading">The China Curveball</h1>
And then there is the China aspect. The unexpected deluge of pro-Musk sentiment on Weibo would boost Tesla&#8217;s brand in China, where the automaker already has a sizeable EV presence. But it also lands Musk in a diplomatically sensitive position geopolitically, with China and the U.S. already involved in a fierce tech and trade competition.
ETFs with global exposure to Tesla, such as iShares Global Clean Energy ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICLN#NASDAQ">ICLN</a>) or KraneShares Electric Vehicles and Future Mobility Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>), may face increased pressure if tensions rise further.
<h1 class="wp-block-heading">Bottom Line</h1>
Ultimately, Musk is more than a CEO. He&#8217;s a geopolitical player. And though that may keep X abuzz, it could also mean that your ETF is along for the ride in a car with no brakes.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/06/46177116/elon-musk-calls-trumps-megabill-political-suicide-says-it-is-utterly-insane-and-destructive-will-des">Elon Musk Calls Trump&#8217;s Megabill &#8216;Political Suicide,&#8217; Says &#8216;It Is Utterly Insane and Destructive,&#8217; Will &#8216;Destroy Millions of Jobs in America&#8217;</a></li>
</ul>
Photos: Shutterstock

Sector ETFs

Politics

ARKK

DRIV

iShares S&P Global Clean Energy Index Fund

ICLN

KARS

Musk Plots A Party, Trump Fires Back, Tesla ETFs Watch The Fallout

Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) and Accenture Federal Services, a unit of Accenture Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>), have formed a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/06/b46164859/palantir-and-accenture-federal-services-join-forces-to-help-federal-government-agencies-reinvent-o/" rel="noreferrer noopener">strategic partnership</a> to provide cutting-edge artificial intelligence capabilities to U.S. federal agencies.
Under the agreement, Accenture Federal becomes a preferred implementation partner for Palantir&#8217;s platforms, focusing on enhancing mission-critical workflows and strengthening government operations through AI.
The collaboration will initially roll out three specialized offerings: &#8220;Enterprise-to-Edge Data Fusion,&#8221; which modernizes legacy systems to deliver real-time data to frontline operations; &#8220;Predictive Supply Chain Orchestration,&#8221; a tool to optimize and automate logistics across agencies; and &#8220;Operationalizing Financial Intelligence,&#8221; a solution designed to improve fiscal oversight by integrating budget data across systems.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings/reiteration/25/06/46059174/accentures-raised-outlook-fails-to-ease-fiscal-2026-softness-worries-analyst" rel="noreferrer noopener">Accenture&#8217;s Raised Outlook Fails To Ease Fiscal 2026 Softness Worries: Analyst</a>
Accenture Federal will train and certify 1,000 members of its Data &amp; AI team on Palantir&#8217;s Foundry and AI Platform to support these efforts, building a delivery force capable of executing scalable, AI-enabled solutions across government functions.
Dr. Alex Karp, Palantir&#8217;s CEO, described Accenture as a &#8220;natural partner,&#8221; noting both firms share a commitment to delivering measurable impact. Julie Sweet, Chair and CEO of Accenture, emphasized how the partnership combines commercial innovation with federal expertise to modernize public services.
Mike Galagher, Palantir&#8217;s defense lead, framed the initiative as essential to national security, enabling smarter decisions on the battlefield.
Ron Ash, CEO of Accenture Federal Services, called the partnership a transformational step for government agencies seeking faster, more informed decision-making. &#8220;This is a game changer for our federal customers,&#8221; he said, pointing to the value of embedding AI into everyday agency operations.
Related ETFs: Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>), iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>).
Price Action: ACN shares gained 1.15% at $298.85, and PLTR was up 4.76% at $136.96 premarket on Monday&#8217;s last check.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/tech/25/06/46161429/canada-rescinds-digital-services-tax-after-trump-calls-it-a-blatant-attack-on-america" target="_blank" rel="noreferrer noopener">Canada Rescinds Digital Services Tax After Trump Calls It A &#8216;Blatant Attack&#8217; On America</a></li>
</ul>
Image via Shutterstock

Movers

Palantir, Accenture Partner To Infuse AI Into Federal Agency Workflows

As artificial intelligence (AI) <a href="https://www.benzinga.com/markets/tech/25/06/46089330/bernie-sanders-slams-job-cuts-says-ai-should-give-workers-more-time-off-instead-of-throwing-you-out-on-the-street">accelerates job displacement,</a> economist Craig Shapiro warns that the Federal Reserve's traditional tool of interest rate cuts is ill-equipped to address the looming labor crisis.
What Happened: In an X post and a detailed Substack essay published today, Shapiro argues that AI's structural impact on employment—particularly in white-collar sectors—renders monetary policy ineffective, urging a shift toward fiscal and regulatory solutions.
&#8220;AI-driven labor displacement, accelerating in 2025, poses a structural crisis that Federal Reserve rate cuts cannot fix,&#8221; he said.
Shapiro's analysis highlights a growing crisis, with tech giants like Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) investing billions in AI, potentially automating 25% of the U.S. labor market by 2030, according to Goldman Sachs.
His X post cites Federal Reserve Vice Chair Michael Barr's 2025 warning that AI could raise the natural unemployment rate due to skill mismatches, a view echoed by a <a href="https://hbr.org/2015/08/research-technology-is-only-making-social-skills-more-important">Harvard study</a> estimating 47% of U.S. jobs at risk. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Hypothesis: Fed interest rate cutting cycle will do very little to save the labor market which has begun to deteriorate more rapidly due to the acceleration of developments from Artificial Intelligence. Why Federal Reserve Policy Tools Can't Alone Solve AI Displacement The…
&mdash; Craig Shapiro (@ces921) <a href="https://twitter.com/ces921/status/1937814880486142284?ref_src=twsrc%5Etfw">June 25, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Rate cuts, designed for cyclical downturns, fail to counter this permanent shift and may even accelerate automation by lowering capital costs, as firms prioritize AI over human labor.
Shapiro also expands on the ripple effects, noting a 62% rise in white-collar workers' job automation fears per a 2025 Pew survey, driving a drop in consumer confidence to 98.2 and a 3.5% decline in luxury spending.
See Also: <a href="http://BlackRock Bets Big On Defense Companies Amid Escalating Geopolitical Tensions: Palantir, Lockheed Martin, Northrop Grumman Among Stocks In Focus">BlackRock Bets Big On Defense Companies Amid Escalating Geopolitical Tensions: Palantir, Lockheed Martin, Northrop Grumman Among Stocks In Focus</a>
Why It Matters: To counter the possible failure of monetary policy, Shapiro advocates for bold measures like universal basic income pilots, tested in Finland with €560 monthly payments, and federally funded reskilling initiatives.
"Monetary policy alone cannot absorb the labor shock of AI," he writes, calling for AI impact assessments and corporate transition taxes. As the job apocalypse unfolds, Shapiro's insights signal that only structural reforms can balance AI's promise with economic stability.
Price Action: Here are a few AI-linked exchange-traded funds that investors can consider amid the booming artificial intelligence demand.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>5.68%</td>
<td>12.16%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>3.78%</td>
<td>12.36%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>7.14%</td>
<td>29.37%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>6.83%</td>
<td>16.11%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>6.37%</td>
<td>8.48%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>9.42%</td>
<td>43.88%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. The SPY was up 0.21% at $608.06, while the QQQ rose 0.38% to $541.83, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
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<li><a href="https://www.benzinga.com/crypto/25/06/46089173/michael-saylor-offers-btc-credit-model-as-bill-pulte-pushes-crypto-for-fannie-mae-freddie-mac-could-bitcoin-soon-count-toward-mortgage-qualification">Michael Saylor Offers BTC Credit Model As Bill Pulte Pushes Crypto For Fannie Mae, Freddie Mac: Could Bitcoin Soon Count Toward Mortgage Qualification? </a></li>
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Image Via Shutterstock

AI Will Disrupt 25% Of US Jobs By 2030—And The Fed Can't Save Them, Economist Warns

Palantir Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) — with a 479% rally over the past year and a <a href="https://www.benzinga.com/trading-ideas/movers/25/06/45888121/palantir-technologies-pltr-stock-soars-to-new-all-time-high-whats-driving-the-rally">fresh all-time high</a> of $137 per share — has turned it <a href="https://www.benzinga.com/topic/artificial-intelligence">into an AI darling</a>. 
As the stock soars, a wave of thematic ETFs built around artificial intelligence and innovation are quietly becoming more reliant on its performance. What started as a diversified bet on the AI revolution is, for some funds, turning into a high-stakes wager on a single stock's ability to keep flying.
Now, a flurry of thematic and <a href="https://www.benzinga.com/etfs">tech-focused ETFs</a>, especially those that pay special attention to artificial intelligence, are quietly cashing in.
Yet with great returns comes great responsibility. Palantir's sharp rise has brought in both performance boosts and portfolio concentration headaches across several funds.
Also Read: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/06/45889275/voo-or-schd-your-etf-pick-says-more-about-you-than-you-think">VOO Or SCHD? Your ETF Pick Says More About You Than You Think</a>
<h3 class="wp-block-heading">ETFs In Focus</h3>
<ul class="wp-block-list">
<li>ARK Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#BATS">ARKK</a>): Cathie Wood&#8216;s flagship fund has held Palantir as a core conviction bet for years. Palantir has been ARKK&#8217;s top 10 holding in the past two years at times, a reflection of Wood&#8217;s belief in the stock&#8217;s longer-term AI potential. As Palantir&#8217;s market cap grows, its weighting in the ETF has crept up to 4.65, enhancing the ETF&#8217;s near-term performance and its volatility profile. ARKK has been helped in the past month by a performance tailwind in part provided by Palantir, but investors are becoming more exposed to single-stock volatility swings.</li>
</ul>
<ul class="wp-block-list">
<li>Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>): This ETF is trying to ride the winners of the AI revolution, and Palantir is one of them. Although AIQ has a wider diversification mandate than ARKK, its growing exposure to Palantir (due to appreciation, not accumulation) makes it similarly sensitive to the stock&#8217;s volatility, as well. The fund has had a good year to date with 10% gains, with PLTR significantly contributing to that gain.</li>
</ul>
<ul class="wp-block-list">
<li>Roundhill Generative AI &amp; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHAT#NYSE">CHAT</a>): CHAT offers pure-play exposure to the generative AI space. Palantir&#8217;s increasing brand reputation for enterprise AI, health optimization, and aviation software can add to its sway within theme ETFs like CHAT that aim to capture the full scope of AI innovation and not just semis and hyperscalers. Currently PLTR is among the top five stocks held in the fund&#8217;s portfolio, with a 4.1% weightage.</li>
</ul>
<h3 class="wp-block-heading">More Juice Or Just Hype</h3>
Palantir&#8217;s fundamentals are sound:
<ul class="wp-block-list">
<li>33% revenue growth</li>
<li>80% margins, and </li>
<li>A steady stream of government and commercial contracts.</li>
</ul>
But the valuation is frothy. Mizuho raised its price target on PLTR from $94 to $116 but still maintains an Underperform rating, citing concerns that the stock is now trading well above its fair value.
<h3 class="wp-block-heading">ETF Investors Need To Be Careful</h3>
Funds like ARKK and AIQ that are loading up in high-conviction growth stocks will, naturally, benefit from the payoff of outliers. But they risk getting swept in the downdraft if the environment shifts. Passive investors may not even know that Palantir&#8217;s stunning growth has quietly altered the risk-return nature of their seemingly diversified ETFs.
Thematically, Palantir&#8217;s rise has wider implications. It implies that enterprise software (i.e., AI-based analytics) is gaining ground in the AI arms race previously dominated by semiconductor giants such as Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). 
ETF sponsors are reacting: newer AI ETFs are beginning to rebalance more significantly toward high-margin software stocks with real enterprise traction.
While Palantir&#8217;s surge has been a boost for AI ETFs, it&#8217;s also a warning that thematic funds can get top-heavy overnight. What starts as a diversified AI bet can subtly transform into a high-beta wager on a small group of stocks.
<h3 class="wp-block-heading">Bottom Line </h3>
Palantir&#8217;s record is dazzling, and AI-themed ETFs have ridden the trend to impressive gains. 
But as the stock becomes an ever-larger slice of the pie in several funds, investors would do well to check their ETF holdings and wonder how much they now own in a company that&#8217;s soaring to new heights, but riding turbulence. 
After all, what Palantir provides, Palantir itself can withdraw, especially in ETFs built for long-term trends but driven by short-term surges.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/06/45889990/new-vanguard-vgms-etf-targets-bigger-bond-returns-beyond-treasuries">New Vanguard VGMS ETF Targets Bigger Bond Returns Beyond Treasuries</a></li>
</ul>
Image: Shutterstock

Broad U.S. Equity ETFs

CHAT

Palantir Powers Up: AI ETFs Ride The Rally, But At What Cost?

This tug-of-war between the two most valuable companies is getting interesting. After getting beaten by Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in early June, Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has gained the lead again, clinching the $3.5 trillion market cap crown, surging on cloud and AI-fueled gains. The rally is also boosting a list of tech ETFs that have double-digit exposure to the software giant.
<h2 class="wp-block-heading">AI Alpha Attracts ETF Flows</h2>
Microsoft's surge is sending ripples through the <a href="https://www.benzinga.com/etfs">ETF universe</a>. Here&#8217;s a breakdown of the funds catching a ride on this trillion-dollar train:
iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)
MSFT weighting: 15.9% (top holding)
AUM: $20.1 billion
Expense ratio: 0.39%
IYW is heavy on software and electronics, which is perfect for tech purists and even for closet MSFT bulls.
Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)
MSFT weighting: 15.1%
AUM: $12.9 billion
Expense ratio: 0.08%
Tracks the full tech shebang, with Microsoft holding the #2 spot. 
Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>)
MSFT weighting: 14.3%
AUM: $90.2 billion
Expense ratio: 0.09%
A beast in terms of size and liquidity, VGT offers you Microsoft and a smorgasbord of other tech giants.
<h2 class="wp-block-heading">AI + Azure = $$</h2>
Call it the co-pilot effect or Azure&#8217;s turbo boost, but Microsoft has stormed back from April's dip, adding nearly $800 billion in market value, per <a href="https://www.bloomberg.com/news/articles/2025-06-05/microsoft-hits-first-record-since-july-as-ai-halo-takes-hold">Bloomberg</a>. It now sits atop the global stock market food chain, edging out Nvidia, which briefly held the title last week.
The real fuel behind this lift? AI and the cloud. Microsoft's <a href="https://www.benzinga.com/25/04/45117886/microsoft-q3-earnings-highlights-revenue-beat-eps-beat-cloud-revenue-up-20">Intelligent Cloud segment jumped 21% in revenues</a> last quarter, with Azure leading the charge. Analysts are drooling over the long-term potential of its OpenAI partnership, which is stitched into everything from productivity software to the broader enterprise AI stack.
Throw in a few bullish analyst calls &#8211; <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45519467/microsofts-4-trillion-moment-is-now-in-sight-goldman-sachs">Goldman sees it at $550</a>, Bernstein SocGen at $540 according to Investing.com &#8211; and you&#8217;ve got a stock that's not just surviving the tech sector's rollercoaster, it's driving it.
<h2 class="wp-block-heading">Valuation: Rich, But Justified</h2>
With a P/E (TTM) of 36.53 per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Microsoft isn&#8217;t cheap, but then again, genius rarely is. But with consistent free cash flow and dominance in enterprise AI, analysts are giving MSFT a free pass&#8230;and then some.
Microsoft is no longer just a tech stock; it's an AI empire. And as it reclaims the $3.5 trillion throne, it's taking a fleet of ETFs along for the victory lap. If you&#8217;re betting on the next wave of digital transformation, MSFT might just be your ticket, and these ETFs are your vehicle.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/06/45859245/harbor-capital-expands-etf-suite-targets-global-value-opportunities">Harbor Capital Expands ETF Suite, Targets Global Value Opportunities</a></li>
</ul>
Photo: Shutterstock

Microsoft Overtakes Nvidia To Top $3.5 Trillion, Taking These 3 ETFs With It

Chamath Palihapitiya has weighed in on the implications of Swedish buy now, pay later firm Klarna significantly scaling back its reliance on artificial intelligence for customer service, suggesting it could signal a broader challenge for AI-first startups.
What Happened: Palihapitiya took to social media to express his concerns, stating that the difficulties Klarna is reportedly facing in fully replacing human agents with AI could force many startups to &#8220;pivot to simply use AI for narrow use cases.&#8221;
His comments come as Klarna, a year after boldly claiming its AI chatbot could handle the workload of 700 representatives, announced a strategic shift to ensure customers always have the option to speak with a human agent.
This marks a notable departure from the company&#8217;s previous &#8220;all in&#8221; approach to AI in customer service, which included layoffs and a hiring freeze.
Klarna spokesperson Clare Nordstrom <a href="https://www.customerexperiencedive.com/news/klarna-reinvests-human-talent-customer-service-AI-chatbot/747586/">told</a> CX Dive that the company&#8217;s AI strategy is evolving. &#8220;AI gives us speed. Talent gives us empathy. Together, we can deliver service that's fast when it should be, and empathetic and personal when it needs to be,&#8221; she explained, highlighting a move towards augmenting human agents rather than fully replacing them. &#8211;
Palihapitiya echoed this sentiment in his online post, suggesting that &#8220;replacing determinism or humans with probabilistic code is fraught with edge cases and require new ways of software development and process engineering that aren&#8217;t well solved yet.&#8221;
He further warned that the difficulties in achieving reliable AI-driven products in real-world applications could have &#8220;severe&#8221; implications for a generation of AI-centric &#8220;apps.&#8221; Customer service, he speculated, might be the first area to show these limitations.
Instead of being &#8220;AI companies,&#8221; they might be forced to adopt AI for specific, limited functions while relying on more deterministic approaches for core operations, he highlighted.
This raises questions, according to Palihapitiya, about the fundamental value proposition of companies that have secured funding at high &#8220;AI valuations&#8221; but may ultimately resemble &#8220;really overpriced SaaS companies.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Not nearly enough people are talking about the implications of Klarna rolling back some of their AI bets. Not knowing any of the details, I can guess why: Replacing determinism or humans with probabilistic code is fraught with edge cases and require new ways of software…
&mdash; Chamath Palihapitiya (@chamath) <a href="https://twitter.com/chamath/status/1922096736308490416?ref_src=twsrc%5Etfw">May 13, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/government/regulations/25/05/45367206/sp-500-rallies-over-3-on-us-china-90-day-tariff-truce-but-experts-warn-it-doesnt-guarantee-a-complete-resolution-of-the-trade-war">S&amp;P 500 Rallies Over 3% On US-China 90-Day Tariff Truce, But Experts Warn It &#8216;Doesn&#8217;t Guarantee A Complete Resolution Of The Trade War&#8217;</a>
Why It Matters: Klarna CEO Sebastian Siemiatkowski emphasized the importance of human interaction from a brand and customer perspective in a recent interview <a href="https://www.bloomberg.com/news/articles/2025-05-08/klarna-turns-from-ai-to-real-person-customer-service">with</a> Bloomberg. &#8220;I just think it's so critical that you are clear to your customer that there will be always a human if you want,&#8221; he stated.
The company is now actively recruiting for a new &#8220;Uber-type&#8221; customer service model, offering flexible, remote work with competitive pay to attract skilled individuals.
Price Action: Here&#8217;s how some AI-linked exchange-traded funds have performed.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-2.69%</td>
<td>15.47%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-3.74%</td>
<td>15.41%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>1.23%</td>
<td>21.80%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-1.77%</td>
<td>17.46%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-1.40%</td>
<td>12.40%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>0.74%</td>
<td>38.88%</td>
</tr>
</tbody>
</table>
</figure>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Tuesday. The SPY was down 0.28% to $581.37, while the QQQ declined 0.36% to $506.00, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<a href="https://www.benzinga.com/25/05/45368511/china-to-us-goods-shipment-jump-after-90-day-tariff-postponement-a-big-backlog-is-looming">China To US Goods Shipment Jump After 90-Day Tariff Postponement: &#8216;A Big Backlog Is Looming&#8217;</a>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock

Market Summary

Futures

General

Chamath Palihapitiya Says Swedish Fintech Company Klarna Scaling Back AI Support Is A Red Flag For Industry: Startups Could 'Pivot To Simply Use AI For Narrow Use Cases'

Earnings reports from several key companies in Dan Loeb's Third Point portfolio hit the tape last week, offering fresh insight into holdings that, as of the fourth quarter of 2024, included major names across sectors.
Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): Loeb cut the stake from 3,700,000 shares in the&nbsp;third quarter&nbsp;of 2024 to 3,450,000 million <a target="_blank" href="https://www.benzinga.com/news/large-cap/25/02/43673006/dan-loebs-amazon-stake-moves-a-look-at-his-trading-shifts" rel="noreferrer noopener">in&nbsp;the&nbsp;fourth quarter&nbsp;of 2024</a>.
<ul>
<li>On May 1, the company reported&nbsp;first-quarter&nbsp;net sales of&nbsp;$155.7 billion, beating a Street consensus estimate of&nbsp;$155.04 billion&nbsp;and EPS of&nbsp;$1.59, exceeding the street<a href="https://www.benzinga.com//node/45151230" target="_blank" rel="noreferrer noopener"> consensus estimate of&nbsp;$1.36</a>.</li>
<li>Amazon guided for&nbsp;second-quarter&nbsp;net sales of&nbsp;$159 billion&nbsp;to&nbsp;$164 billion, up&nbsp;7%&nbsp;to&nbsp;11% vs <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">street view of&nbsp;$160.91 billion</a>.</li>
<li>Amazon said the&nbsp;guidance&nbsp;is subject to &#8220;unpredictable&#8221; items that include foreign exchange rates, changes in geopolitical conditions and &#8220;tariff and trade policies.&#8221;</li>
<li>CEO&nbsp;Andy Jassy&nbsp;predicted a potential shift in consumer behavior reminiscent of the pandemic era while asserting that the e-commerce <a href="https://www.benzinga.com/markets/25/05/45158172/andy-jassy-predicts-pandemic-like-consumer-shifts-says-amazon-is-maniacally-focused-on-keeping-prices-low" target="_blank" rel="noreferrer noopener">giant is doubling down on affordability</a>.</li>
<li>JPMorgan analyst Doug Anmuth highlighted Amazon's Q1 revenue and operating income which exceeded the high end of guidance, with no significant negative impact from macroeconomic or tariff issues. He also pointed to AWS margins that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/05/45172067/amazon-delivers-q1-on-the-steady-side-of-ok-as-analysts-highlight-aws-ai-demand" target="_blank" rel="noreferrer noopener">reached an all-time high</a>. </li>
<li>Rosenblatt analyst Barton Crockett labelled Amazon&#8217;s first-quarter as &#8220;on the steady side of OK,&#8221; but flagged the potential for impacts from tariffs which &#8220;could start hitting soon.&#8221; </li>
<li>RBC Captial Markets analyst Brad Erickson also highlighted the growth in AWS backlog and expects acceleration in <a href="https://www.benzinga.com/25/05/45163955/these-analysts-boost-their-forecasts-on-amazon-following-upbeat-q1-results" target="_blank" rel="noreferrer noopener">the second half of the year</a>. </li>
<li>Year to date (YTD), Amazon fell about 17.11%, vs. the ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>), which declined about 4.70%&nbsp;over the same time frame.</li>
</ul>
Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): According to the 13F filings released on Feb. 14, Loeb increased his stake in Facebook's parent company to 665,000, up from 545,000 in the third <a href="https://www.benzinga.com/news/large-cap/25/02/43796723/dan-loebs-third-point-boosts-meta-holdings-now-a-top-4-position" target="_blank" rel="noreferrer noopener">quarter of 2024, a 22% increase.</a>
<ul>
<li>Meta reported&nbsp;first-quarter&nbsp;revenue of&nbsp;$42.31 billion, beating&nbsp;analyst estimates of&nbsp;$41.39 billion and EPs of&nbsp;$6.43&nbsp;per share, easily beating analyst <a href="https://www.benzinga.com//node/45117948" target="_blank" rel="noreferrer noopener">estimates of&nbsp;$5.21&nbsp;per share</a>.</li>
<li>Meta expects&nbsp;second-quarter&nbsp;revenue of&nbsp;$42.5 billion&nbsp;to&nbsp;$45.5 billion&nbsp;versus&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a> estimates of&nbsp;$44.06 billion.</li>
<li>Goldman Sachs analyst Eric Sheridan pointed to CEO Mark Zuckerberg&#8216;s list of five AI-driven opportunities: improved advertising, more engaging user experiences, business messaging, Meta AI and AI devices – notably, Ray-Ban Meta AI glasses, which saw three times sales and more than four <a href="https://www.benzinga.com/quote/META/analyst-ratings" target="_blank" rel="noreferrer noopener">times active users year-over-year</a>. </li>
<li>BofA Securities analysts see Meta as well-positioned to thrive in a softer macro-economic environment and highlighted the company&#8217;s capex spend as &#8220;building <a href="https://www.benzinga.com/25/05/45144725/meta-analysts-highlight" target="_blank" rel="noreferrer noopener">a foundation for long-term growth.&#8221;</a> </li>
<li>Needham analyst Laura Martin questioned the company&#8217;s long-term terminal value, noting that Meta does not control its distribution or content and faces stiff competition from Apple, TikTok and YouTube. </li>
</ul>
Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): Loeb slashed his stake in the company&nbsp;from 870,000 shares&nbsp;in&nbsp;the third quarter of 2024&nbsp;to&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/25/03/44115397/dan-loebs-third-point-slashes-microsoft-stake-analysts-blame-disappointing-azure" rel="noreferrer noopener">600,000 in the fourth quarter</a>.
<ul>
<li>The company reported&nbsp;third-quarter&nbsp;revenue of&nbsp;$70.07 billion, beating a Street consensus estimate of&nbsp;$68.43 billion and EPS of&nbsp;$3.46, beating a Street <a href="https://www.benzinga.com//node/45117886" target="_blank" rel="noreferrer noopener">consensus estimate of&nbsp;$3.22</a>.</li>
<li>Microsoft says its focus on cloud services and customer-centric solutions could help the company not only survive a recession<a href="https://www.benzinga.com//node/45125965" target="_blank" rel="noopener"> but also</a><a href="https://www.benzinga.com//node/45125965" target="_blank" rel="noreferrer noopener"> grow through it</a>.</li>
<li>Microsoft guided&nbsp;fourth-quarter&nbsp;cloud margins to about&nbsp;67%, with intelligent cloud revenue expected between&nbsp;$28.75 billion&nbsp;and&nbsp;$29.05 billion.</li>
<li>Goldman Sachs analyst Kash Rangan says that despite macroeconomic uncertainty and potential tariff risks, the company is set up to post free cash flow growth of 3% and earnings-per-share growth of 17% in fiscal year 2026, with <a href="https://www.benzinga.com//node/45137383" target="_blank" rel="noreferrer noopener">Azure maintaining a 30% growth rate</a>.</li>
<li>KeyBanc analyst Jackson Ader writes that the quarter highlights a principal risk in not being overweight MSFT right now: We have no visibility into capacity unlocks. Microsoft&#8217;s return on investment math for AI is still difficult to make sense of, and there could be <a href="https://www.benzinga.com//node/45149535" target="_blank" rel="noreferrer noopener">better stocks to play &#8220;offense&#8221; with</a>.</li>
<li>Microsoft-Backed OpenAI&nbsp;has&nbsp;agreed to buy&nbsp;Windsurf&nbsp;for about&nbsp;$3 billion to take on&nbsp;competition&nbsp;in the market for <a href="https://www.benzinga.com//node/45224667" target="_blank" rel="noreferrer noopener">AI-driven coding assistants</a>.</li>
<li>YTD, Microsoft has risen around 3.12%, outperforming the&nbsp;iShares U.S. Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>), which lost about 9.93%&nbsp;over the same time frame.</li>
</ul>
Fortive Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTV#NYSE">FTV</a>): In the fourth quarter of 2024, the investor acquired a stake of 1,900,000 shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514625001713/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">in </a>the company.
<ul>
<li>Fortive&nbsp;reported first quarter adjusted EPS&nbsp;of $0.85, which is in line with the consensus and, sales of $1.47 billion <a href="https://www.benzinga.com//node/45130994" target="_blank" rel="noreferrer noopener">missed the consensus of&nbsp;$1.49 billion</a>.</li>
<li>The company projects second quarter adjusted EPS of&nbsp;$0.85-$0.90&nbsp;<a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">vs. street estimate of $0.98</a>.</li>
<li>The company lowered FY25 adjusted EPS&nbsp;guidance&nbsp;from&nbsp;$4.00-$4.12&nbsp;to&nbsp;$3.80-$4.00&nbsp;vs&nbsp;consensus of $4.02.</li>
<li>Fortive appointed Neill Reynolds as CFO of Ralliant, effective June 2, 2025, and announced the filing of a Form 10 registration statement <a href="https://www.benzinga.com//node/45190836" target="_blank" rel="noreferrer noopener">for the planned spin-off of Ralliant</a>.</li>
<li>Barclays analyst Julian Mitchell maintained an Overweight rating and lowered the price forecast from $85 to $84.</li>
<li>YTD, Fortive declined around 10.91%, underperforming the WisdomTree U.S. AI Enhanced Value Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIVL#NYSE">AIVL</a>), which lost about 0.04%&nbsp;over the same time frame.</li>
</ul>
Hess Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>): Third Point held 625,000 shares in the company <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514625001713/xslForm13F_X02/infotable.xml" target="_blank" rel="noopener">as </a>of the fourth quarter of 2024.
<ul>
<li>Hess reported first-quarter adjusted EPS of $1.81, which beat the consensus estimate of $1.61 and sales of $2.94 billion, <a href="https://www.benzinga.com//node/45096392" target="_blank" rel="noreferrer noopener">exceeded the estimated $2.71 billion</a>.</li>
<li>The company projects a total production of 480-490 MBOE per day <a href="https://investors.hess.com/static-files/a2100eac-445b-437c-9224-d0d56a20b5f4" target="_blank" rel="noreferrer noopener">and </a>Exploration and Production Capital and Exploratory Expenditures of $1.27 billion in the second quarter.</li>
<li>YTD, Hess declined around 5.07%, vs. the Invesco S&amp;P 500 Equal Weight Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPG#NYSE">RSPG</a>), which declined about 10.63%&nbsp;over the same time frame.</li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/news/large-cap/25/04/45048902/tariffs-bite-dan-loebs-portfolio-thermo-fisher-hit-hard-discover-shines" target="_blank" rel="noreferrer noopener">Tariffs Bite Dan Loeb&#8217;s Portfolio: Thermo Fisher Hit Hard, Discover Shines</a></li>
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Photo: Shutterstock

Large Cap

AIVL

iShares Trust S&P Global Telecommunications Sector Index Fund

ONLN

RSPG

Amazon, Meta, Microsoft Earnings Put Dan Loeb's Portfolio To The Test

Wall Street's darling rally just hit a technical speed bump. According to JPMorgan&#8217;s Jason Hunter, the S&amp;P 500 and its heavyweight tech crew — <a href="https://www.benzinga.com/topic/magnificent-seven">the Magnificent Seven</a> — are stuck below crucial resistance levels, raising the risk of a summer slump before any sustainable comeback.
<h1 class="wp-block-heading">S&amp;P 500 Faces Key Resistance</h1>
Hunter flags the 5425-5650 zone as a brick wall for the S&amp;P 500, noting that the index has already rejected that threshold in early-April and is still showing signs of fragility. While bulls may be eyeing fresh highs, JPMorgan's read is more cautious. According to Hunter, the index could slide back to 4500-4800 — a zone that could mark a "more durable bottom&#8221; — before setting up for a more solid rebound later this year.
<h1 class="wp-block-heading">Magnificent 7 Consolidating Below Breakdown Levels</h1>
But the real story, Hunter says, lies in the Magnificent 7 — Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) — all of which have broken down from long-standing uptrends.
That, in Wall Street speak, means they're no longer leading the charge — at least for now.
Read Also: <a href="https://www.benzinga.com/25/04/44683681/exclusive-metas-still-the-mag-7-standout-says-expert-but-can-it-hold-on" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Meta&#8217;s Still The Mag 7 Standout, Says Expert &#8211; But Can It Hold On?</a>
These &#8220;stocks are now consolidating within volatile ranges below their respective breakdown levels," Hunter wrote, suggesting investors may face more whiplash than windfall this summer.
The technical analyst isn't ruling out rebounds, but he's skeptical of anything more than short-term bounces: "The medium-term trend bias stays negative while below those resistance zones." Translation: don't chase the rips, especially if you&#8217;re expecting a V-shaped recovery.
<h1 class="wp-block-heading">Stay Cautious: Watch for Clear Bottoming Patterns</h1>
For investors, the implication is clear: tactically trim exposure to high-fliers and consider rotating into safety until the dust settles. 
ETFs like the Invesco S&amp;P 500 Low Volatility ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLV#NYSE">SPLV</a>) and the iShares MSCI USA Min Vol Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USMV#NYSE">USMV</a>) may offer a softer landing.
Meanwhile, those still bullish on AI and Big Tech could look to dollar-cost average into dips via diversified exposure through the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) or the iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) — but with a side of patience.
The bottom line? 
Until the S&amp;P 500 breaks above resistance and the Magnificent 7 prove they can reclaim lost ground, expect more chop than charge. Or, as Hunter subtly puts it, we need to "see clear price action that looks like a maturing bottoming process."
Read Next: 
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<li><a href="https://benzinga.com/trading-ideas/long-ideas/25/04/44977897/exclusive-nvidia-alphabet-microsoft-amazon-meta-now-in-the-bargain-bin-after-being-heavily-sold-off-says-expert" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Nvidia, Alphabet, Microsoft, Amazon, Meta &#8211; Now In The Bargain Bin After Being &#8216;Heavily Sold Off&#8217;, Says Expert</a></li>
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Photo: <a href="https://www.shutterstock.com/g/Gumbariya">Gumbariya</a> via Shutterstock

S&P 500, Magnificent 7 Hit Resistance: Analyst Warns Of More Pain Before Gain

WIIM

AKAM

APPS

ASML

CDNS

CMTL

COHR

CSAI

DATS

DELL

ENPH

ENTG

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INTC

LAES

LDTC

LITE

LMFA

MASS

MPWR

MRVL

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OKTA

OLED

OUST

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Penguin Solutions, Inc. - Ordinary Shares

PENG

PRSO

QCOC

RDZN

SAIL

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iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

STAI

ZETA

Shares of technology stocks are trading lower amid an overall market reversal following Wednesday's surge.

Editor's Note: This article has been updated to reflect that the fund formerly known as the Invesco Defensive Equity ETF is now the Invesco Bloomberg Pricing Power ETF.
The S&amp;P 500's fireworks this week may have lit up Wall Street, <a href="https://www.benzinga.com/topic/jeremy-siegel">but Jeremy Siegel</a> isn't buying into the revelry just yet.
<h1 class="wp-block-heading">Pause Doesn&#8217;t Equal Peace: Trump's Tariff Timeout Isn't The Endgame</h1>
Despite a 9.5% one-day rally that put the index in rarefied post-World War II territory, Siegel <a href="https://www.cnbc.com/2025/04/10/jeremy-siegel-says-stocks-are-not-out-of-the-woods-yet-due-to-difficult-china-negotiations-ahead.html">told</a> CNBC's Squawk Box that investors celebrating a tariff truce may be getting ahead of themselves. "We're not out of the woods," the WisdomTree chief economist warned, pointing to the looming uncertainty in U.S.-China trade negotiations.
President Donald Trump's 90-day pause on reciprocal tariffs sparked the market&#8217;s surge, but with the 10% tariff now permanent and China countering with 84% on U.S. goods, this is hardly a peace treaty. 
According to Siegel, investor sentiment remains shaky, still reeling from the initial tariff shock. That means the S&amp;P 500, down 11% from its highs and still negative for April, may struggle to reclaim its February peak anytime soon.
Read Also: <a href="https://www.benzinga.com/government/regulations/25/04/44730455/bearish-sentiment-hits-7-week-high-mimicking-35-year-old-record-which-marked-the-bottom-of-the-october-1990-bear-market">Bearish Sentiment Hits 7-Week High, Mimicking 35-Year Old Record Which Marked The Bottom Of The October 1990 Bear Market</a>
<h1 class="wp-block-heading">Next Stop: July 9 and More Trade Turbulence</h1>
The market's next inflection point? Likely July 9, when the next tariff round could escalate tensions further.
For investors riding the broader index rebound, ETFs like the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) have all surged — but Siegel suggests caution.
For investors looking to play defense, sector ETFs like the Invesco Bloomberg Pricing Power ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POWA#NYSE">POWA</a>) or the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) may offer some shelter.
On the flip side, those still leaning into the rebound could watch the iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) as tech has led past snapbacks, but remains exposed to global trade flows.
This isn't an "all clear" for risk-on strategies. Bulls may want to wait for more than just headlines before charging back in.
Read Next: 
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<li><a href="https://www.benzinga.com/25/04/44734009/tech-sector-heading-into-a-period-of-mass-uncertainty-amid-tariffs-and-upcoming-earnings-season-says-dan-ives-the-damage-is-real">Tech Sector Entering A Period Of &#8216;Mass Uncertainty&#8217; Amid Tariffs And Upcoming Earnings Season, Says Dan Ives: &#8216;The Damage Is Real&#8217;</a></li>
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Photo: <a href="https://www.shutterstock.com/g/zimmytws">zimmytws</a> via Shutterstock

POWA

TSX:DEF

Jeremy Siegel Sounds The Tariff Alarm: Bulls May Want To Be Cautious (UPDATED)

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is moving ahead with its most ambitious health initiative to date, aiming to elevate its Health app with AI capabilities that mimic real doctors. 
Bloomberg&#8217;s&nbsp;Mark Gurman,&nbsp;in his&nbsp;<a href="https://www.bloomberg.com/news/newsletters/2025-03-30/apple-readies-biggest-push-into-health-yet-with-revamped-app-ai-doctor-service-m8vl97k2?srnd=undefined&amp;sref=TBDibEcD">latest&nbsp;</a>weekly &#8220;Power On&#8221;, has said that the tech giant is also gearing up to launch an M5-powered iPad Pro later this year, and has announced key organizational changes and its next developers conference.
As part of its moon-shot health goals, Apple has been working on Project Mulberry, a major upgrade to its Health app, featuring an AI-driven coach that can deliver customized health insights using user data. This app overhaul will be accompanied by a virtual health guide trained on inputs from internal and external medical professionals, including specialists in sleep, nutrition, and cardiology. The service, potentially branded as "Health+," is expected to debut with iOS 19.4 next year.
The app will integrate video explainers from physicians, track nutrition in detail, and even use iPhone cameras to assess users' exercise form. Apple is also constructing a facility near Oakland, California, where doctors will film educational content for the platform.
Also Read: <a href="https://www.benzinga.com/tech/25/03/44450408/apple-explores-ai-wearables-with-camera-integrated-smartwatches">Apple Explores AI Wearables With Camera-Integrated Smartwatches</a>
On the hardware front, Apple is testing four new versions of the iPad Pro featuring the M5 chip. These models, now in advanced testing, are expected to launch in the second half of 2025. The company is also working on an M6 version with its own modem chips, which could be ready by 2027. 
Meanwhile, M5 upgrades are coming to MacBook Pro and MacBook Air as well, likely following the same annual release cadence as their M4 predecessors.
Apple quietly announced its Worldwide Developers Conference (WWDC) 2025 for June 9–13. The mostly virtual event will feature in-person segments for the keynote and State of the Union. This year's announcement carried a more restrained tone, contrasting with previous years' bold messaging.
The tech giant continues to diversify its business while rivals such as Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) make parallel moves in AI and health. For investors tracking broader trends, the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) and iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) remain key barometers of sector momentum.
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Image: Shutterstock

Inside Apple's Silent Revolution—AI Doctors, Nutrition Tech, And A New Retail Boss

Billionaire investor Mark Cuban has urged GenZ youth to upscale themselves by learning more about artificial intelligence. As growing AI applications have been disrupting business, here is a list of AI-linked investment opportunities that investors could consider to increase their exposure.
What Happened: During an <a href="https://www.youtube.com/watch?v=vkJfCMycJRk">interaction</a> at South by Southwest or SXSW festival in Austin, Texas, Cuban said that it was pivotal to learn about AI to integrate it into business.
Addressing the entrepreneurship-oriented youth, Cuban said, &#8220;I would spend every waking minute learning about AI,&#8221; when asked about advice for the next generation of business leaders.
He also used his own Instagram and TikTok feed as an example, stating that it consisted of AI hacks because of the rapid technological changes and AI adoption.
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<li>This Startup Is On The Brink Of A Huge Disruption To The $654 Billion Industry — <a href="https://www.benzinga.com/money/venhub-adv">Invest In It Before It Fulfills 800 Pre-Orders</a></li>
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&#8220;It&#8217;s one thing to have a business and how you integrate AI. But if you&#8217;re just getting started, as you learn these things, it&#8217;s so much easier to start,&#8221; he said.
&#8220;Whether you use Perplexity, Anthropic Claude, ChatGPT, Gemini. It doesn&#8217;t matter, right?&#8221; he said rhetorically stating that AI tools can &#8220;spider everything&#8221; from writing emails to doing sales calls.
However he added that most people won&#8217;t leverage the capabilities of AI, &#8220;But those people who put in the time are going to crush it,&#8221; he said.
Why It Matters: The AI race has been intensifying worldwide. The popularity of Chinese AI startup DeepSeek triggered a selloff in AI-linked stocks and major AI chipmaker Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) in mid-January.
While companies worldwide are finding a way for AI training and inferencing without using Nvidia&#8217;s advanced chips, the South China Morning Post <a href="https://www.scmp.com/tech/tech-war/article/3302516/chip-war-chinese-start-aims-break-nvidias-grip-ai-new-model-framework">reported</a> on Sunday that a Tsinghua University-linked team introduced an AI framework that can work on Chinese-made chips. 
Qingcheng.AI and Tsinghua University unveiled Chitu, an LLM inference framework for Chinese chips, challenging Nvidia&#8217;s GPUs by supporting models like DeepSeek-R1.
Thus, as AI gains more prominence and global firms strive to improve efficiency, here is a list of AI-exposed exchange-traded funds listed in the U.S. that investors could consider in the long term.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-8.74%</td>
<td>9.36%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-9.41%</td>
<td>9.04%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>4.21%</td>
<td>13.93%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-7.70%</td>
<td>10.80%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-7.21%</td>
<td>6.19%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, dropped in premarket on Monday. The SPY was down 0.30% to $561.12, and the QQQ also declined 0.17% to $478.85, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
SPY closed 2.07% higher at $562.81 and QQQ rose 2.42% to $479.66 on Friday.
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<li><a href="https://www.benzinga.com/money/gbr-savings-by-age">If You're Age 35, 50, or 60: Here&#8217;s How Much You Should Have Saved Vs. Invested By Now</a></li>
<li><a href="https://www.benzinga.com/25/03/44353578/safe-haven-amidst-volatility-gold-tops-3000-as-market-corrects-but-it-tends-to-see-painful-drawdowns-after-period">Hasbro, MGM Resorts, and Sketchers Use this Pre-IO AI Marketing Firm — <a href="https://www.benzinga.com/money/rad-intel">and You Can Own a Piece of it From $0.55/ per Share</a></a></li>
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Photo courtesy: Shutterstock

Mark Cuban Advises GenZ To 'Spend Every Waking Minute Learning About AI:' Here's A List Of AI Investment Opportunities For Long Term

Dan&nbsp;Loeb‘s&nbsp;Third Point LLC has gradually reduced its stake in tech giant Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) over the last year, lowering the stake by 3x since <a target="_blank" href="https://www.benzinga.com/topic/dan-loeb" rel="noreferrer noopener">the fourth quarter of 2023</a>.
Details: According to recent 13F filings, reflecting his holding as of Dec. 31, 2024, Loeb slashed his stake in the company from 870,000 shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624005927/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">in </a>the third quarter of 2024 <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514625001713/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">to </a>600,000. That&#8217;s a decline of around 31%.
This compares to 1.58 million shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624004004/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">as </a>of the second quarter of 2024, 1.765 million shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624002645/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">as </a>of the first quarter of 2024, and 2.015 million shares as <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624001503/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">of </a>the fourth quarter of 2023.
<ul>
<li>In January, Microsoft&nbsp;reported second-quarter&nbsp;EPS of&nbsp;$3.23, beating the&nbsp;$3.11&nbsp;consensus estimate, and revenue of&nbsp;$69.6 billion, beating the&nbsp;<a href="https://www.benzinga.com//node/43320124" target="_blank" rel="noreferrer noopener">$68.78 billion&nbsp;analyst consensus estimate</a>.</li>
<li>The company revealed transformative momentum in its artificial intelligence business, announcing a&nbsp;$13 billion&nbsp;annual AI revenue run rate alongside a major Azure commitment from&nbsp;OpenAI&nbsp;that propelled commercial bookings to unprecedented&nbsp;<a href="https://www.benzinga.com//node/43327008" target="_blank" rel="noreferrer noopener">levels in the&nbsp;second quarter</a>.</li>
<li>In February, the company has&nbsp;began canceling leases&nbsp;for significant data center capacity in the U.S., possibly <a href="https://www.benzinga.com/25/02/43917474/microsoft-cancels-major-data-center-leases-raises-questions-on-ai-expansion-strategy" target="_blank" rel="noreferrer noopener">signifying AI computing overcapacity</a>.</li>
<li>CEO Satya Nadella unveiled Majorana 1, a quantum chip powered by an entirely new state of matter—topoconductorsn and aims to scale to 1 million qubits <a href="https://www.benzinga.com/25/02/43830761/microsoft-unveils-majorana-1-quantum-chip-races-against-google-and-nvidia-in-quantum-computing" target="_blank" rel="noreferrer noopener">for industrial-scale problem-solving</a>.</li>
<li>Microsoft has pledged to invest an additional $700 million in Poland. The investment aims to strengthen the country's cybersecurity infrastructure in partnership <a href="https://www.benzinga.com/25/02/43764792/microsoft-commits-700-million-to-boost-polands-cybersecurity-infrastructure-as-part-of-the-2023-polish-data-center-project" target="_blank" rel="noreferrer noopener">with the Polish armed forces</a>.</li>
<li>In March, the company launched Dragon Copilot, an AI assistant designed to streamline clinical workflows by combining voice dictation, ambient&nbsp;<a href="https://www.benzinga.com/25/03/44087329/microsoft-unveils-ai-powered-dragon-copilot-to-ease-clinician-workloads" target="_blank" rel="noreferrer noopener">listening, and generative AI</a>.</li>
</ul>
<h2 class="wp-block-heading">Analysts Views</h2>
<ul>
<li>Morgan Stanley analyst Keith Weiss lowered the price forecast from $540 to $530, stating that while &#8221;Azure was disappointing.&#8221; Strength in the GenAI ramp vs moderating capex growth should <a href="https://www.benzinga.com//node/43351098" target="_blank" rel="noreferrer noopener">support accelerating FY26 FCF growth</a>.</li>
<li>DA Davidson determined that demand for its AI services &#8221;remains heightened.&#8221; However, core Azure services continue to decelerate. Management is retracting its previous guidance of a &#8221;second-<a href="https://www.benzinga.com/quote/MSFT/analyst-ratings" target="_blank" rel="noreferrer noopener">half reacceleration of Azure revenue</a>.&#8221;</li>
<li>Raymond James analyst says that overall, this quarter will &#8221;go down as a disappointment.&#8221; That&#8217;s not due to any revisions on the scale of the AI opportunity but more due to the timing of capitalization on these trends.</li>
</ul>
In the past year, Microsoft has declined around 3.5%, underperforming the iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>), which gained about 43.1% over the same time frame.
Also, the company significantly lagged compared to its closest peers Oracle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), which rose roughly 46.0%, and&nbsp;ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), which grew approximately 22.99% in the last one year.
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Image: Shutterstock

Dan Loeb's Third Point Slashes Microsoft Stake, Analysts Blame 'Disappointing' Azure

Chipmaker Nvidia Corp., along with other artificial intelligence-linked stocks and exchange-traded funds, have plunged in 2025 despite the growing enthusiasm surrounding the sector. This expert who predicted the dot-com crash compares the AI-linked enthusiasm to instances that &#8220;sometimes leads to bubbles&#8221;.
What Happened: After the release of his latest memo, &#8216;On Bubble Watch,&#8217; in early January, Howard Marks, the co-founder and co-chairman of Oaktree Capital Management, spoke about how AI is poised to change the world in a <a href="https://www.oaktreecapital.com/insights/memo-podcast/behind-the-memo-on-bubble-watch">podcast</a> titled &#8216;Behind the Memo &#8211; On Bubble Watch&#8217; with Harry Whitelaw.
According to Marks, the novelty of AI places no limits on the potential and enthusiasm surrounding the sector. Having &#8220;no historical&#8221; base also aids to the unending enthusiasm for AI.
Highlighting these conditions, Marks said, &#8220;That's a great precursor for the kind of enthusiasm that sometimes leads to bubbles.&#8221;
&#8220;The thrill of the new thing and the fear of missing out is an incredibly powerful combination. I've seen it at work many times and it'll never stop, in my opinion,&#8221; he added.
These predictions came true as the AI-linked stocks and sectors have underperformed in 2025. Despite the emergence of <a href="https://www.benzinga.com/markets/equities/25/02/43995515/jensen-huang-says-deepseek-was-fantastic-next-gen-models-demand-100x-more-compute-as-nvidia-smashes-earnings-records">DeepSeek</a>, which according to many experts will only fuel the demand of AI, the weakness in the sector is evident after unbridled enthusiasm in 2024.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Stocks</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>-9.76%</td>
<td>46.42%</td>
</tr>
<tr>
<td>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)</td>
<td>-1.01%</td>
<td>37.86%</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>-5.16%</td>
<td>-4.32%</td>
</tr>
<tr>
<td>Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>-3.75%</td>
<td>19.36%</td>
</tr>
<tr>
<td>Alphabet Inc. Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)</td>
<td>-9.71%</td>
<td>28.26%</td>
</tr>
<tr>
<td>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>)</td>
<td>11.51%</td>
<td>34.13%</td>
</tr>
<tr>
<td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>-22.74%</td>
<td>55.76%</td>
</tr>
<tr>
<td>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)</td>
<td>12.92%</td>
<td>253.18%</td>
</tr>
<tr>
<td>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>)</td>
<td>0.02%</td>
<td>45.59%</td>
</tr>
</tbody>
</table>
</figure>
Broadly, the AI-linked ETFs have also largely underperformed in 2025.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>-3.06%</td>
<td>14.53%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-3.80%</td>
<td>13.40%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>1.09%</td>
<td>20.90%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-2.19%</td>
<td>16.18%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-2.50%</td>
<td>9.97%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">Billionaire Investor Who Predicted The Dot-Com Crash 25 Years Ago Warns Of Another Market Storm Brewing In The US</a>
Why It Matters: Famed investor Marks, who foresaw the dot-com bubble, once again sounded an alarm on Jan. 7, with his latest memo, &#8216;<a href="https://www.benzinga.com/markets/equities/25/01/42995814/billionaire-investor-who-predicted-the-dot-com-crash-25-years-ago-warns-of-another-market-storm-brewing-in-the-us">On Bubble Watch</a>&#8216;. He points to several &#8220;cautionary signs&#8221; in the current market, including soaring valuations, AI hype, and heavy reliance on mega-cap tech stocks. 
Marks also highlights research from JP Morgan Asset Management showing that high valuations like today&#8217;s often precede lackluster returns over the following decade. He cautions that investors should not ignore these warning signs, especially the elevated market valuations. Essentially asking to proceed with caution.
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose on Friday. The SPY was up 1.56% to $594.18, and the QQQ also advanced 1.56% to $508.10, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43622036/warren-buffett-indicator-tops-205-amid-skyrocketing-sp-500-valuations-as-this-billionaire-dot-com-crash-predictor-sounds-alarm">Warren Buffett Indicator Tops 205% Amid Skyrocketing S&amp;P 500 Valuations As Billionaire Who Predicted Dot-Com Crash 25 Years Ago Warns Of Brewing Trouble</a></li>
</ul>
Photo courtesy: Oaktree Capital Management

Billionaire Investor Howard Marks Warns Against AI's 'Powerful' Novelty And FOMO As Nvidia, Other AI-Linked Stocks Tumble In 2025: Says This Enthusiasm 'Sometimes Leads To Bubbles'

Billionaire Ray Dalio cautioned investors in a recent podcast interview with Tucker Carlson saying that the development of artificial intelligence could risk totalitarian social control or even anarchy in the coming years.
Highlighting the unpredictability in the direction of AI's growth, Dalio anticipated a radically different world over the next five years.
What Happened: Dalio recently appeared on a podcast with Carlson on the latter's YouTube channel discussing the trends in the U.S. economy, debt crisis, stock market, and AI.
Discussing the various possibilities of using AI at a "molecular level," from solving medical issues to problems like inflation within an economy, Dalio said that AI was a "two-edged sword". The future could be shaped depending on who has access to and control of such AI tools, he said.
When asked if there was a way to avoid totalitarian social control through AI, Dalio said, "I think there&#8217;s a question of whether you can have social and totalitarian controls or maybe you just have anarchy."
Dalio believes that humanity will undergo an AI technology-induced "time warp," which will radically change the world in the next five years. He also added that quantum computing will be another innovation to look at.
"So the world five years from now is going to be a radically different world. And I don&#8217;t know what that&#8217;s going to look like when you go into the world of quantum computing and what quantum is like in so many different ways. It raises questions of, you know, what is that like?" said Dalio.
See Also: <a href="https://www.benzinga.com/25/02/43932776/mark-cuban-slams-fd-up-healthcare-system-blames-insurance-designed-deductibles-for-patient-bankruptcy">Mark Cuban Calls Deductibles &#8216;The Biggest Problem&#8217; in Healthcare: &#8216;System…Needs To Be Redesigned&#8217;</a>
Why It Matters: Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) launched ‘Majorana 1,' last week which is one of its kind quantum computing chip operating in a topological phase of matter. While Satya Nadella termed it a "physics breakthrough," he added that the launch of this chip could shorten the timeline of a possible quantum computing breakthrough.
Similarly, with DeepSeek's emergence, the competition in the AI industry has also intensified. Here is a list of AI and quantum computing-linked exchange-traded funds that investors could consider over the long term.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>YTD Performnace</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>)</td>
<td>7.55%</td>
<td>0.90%</td>
</tr>
<tr>
<td>Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>)</td>
<td>-2.57%</td>
<td>17.89%</td>
</tr>
<tr>
<td>First Trust Dow Jones Internet Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDN#NYSE">FDN</a>)</td>
<td>0.80%</td>
<td>22.78%</td>
</tr>
<tr>
<td>iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>)</td>
<td>-1.14%</td>
<td>20.91%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>)</td>
<td>-0.66%</td>
<td>14.81%</td>
</tr>
<tr>
<td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td>
<td>-1.93%</td>
<td>37.08%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Wednesday. SPY was up 0.45% to $596.94, and QQQ advanced 0.75% to $517.16, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/02/43936887/amazon-exceeds-walmart-q4-revenue-which-was-77x-lower-in-2000-took-25-years-contrary-to-jeff-bezos-10-year-overnight-success-statement-in-2018">Jeff Bezos Once Said &#8216;Overnight Success&#8217; Takes 10 Years. It Took Amazon 25 Years To Surpass Walmart&#8217;s Revenue</a></li>
</ul>
Photo courtesy: Shutterstock

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