tl;dr
The technology sector (XLK) returns are expected to come under pressure as generative artificial intelligence matures, according to Alexandra Wilson-Elizondo, co-chief investment officer of multi-asset solutions at Goldman Sachs. In an interview with Bloomberg, she mentioned that the firm’s Asset Ma...
The technology sector (XLK) returns are expected to come under pressure as generative artificial intelligence matures, according to Alexandra Wilson-Elizondo, co-chief investment officer of multi-asset solutions at Goldman Sachs. In an interview with Bloomberg, she mentioned that the firm’s Asset Management team is taking profits out of some tech sector names and into cheaper companies from sectors like energy (XLE) and Japanese shares (EWJ, DXJ). Wilson-Elizondo highlighted that the risk-reward profile of the tech industry (XLK) is “skewed to the downside,” and while her team is still long equities, they believe there are more attractive opportunities to access. Notable year-to-date performances include Nvidia (NVDA) up 72.36%, Apple (AAPL) down 12.71%, Microsoft up 11.87%, Alphabet (GOOGL) up 11.29%, Amazon (AMZN) up 21.47%, and Meta Platforms (META) up 44.71%. However, Tesla (TSLA) is down significantly at -30.69% due to concerns over electric vehicle demand. Goldman analysts are holding overweight positions on energy (XLE) shares as a hedge against inflation and geopolitics. S&P Oil and Gas (XOP) is up 16.98% year-to-date, nearing June 2022 highs. Wilson-Elizondo also noted that the U.S. economy is “on track for a soft landing,” but there is still risk for a change in trajectory. Her team is cautious on utilities (XLU), REITs (REIT:IND, REIT), and small caps (SPSM) due to their sensitivity to high-interest rates. However, some small-cap stocks seem attractive because of their cheap valuations and may be targets for AI companies.
More about NVIDIA Corporation
NVIDIA Corporation
Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
Market Cap: 213.38B
Current Price: $71.43
Change: $0.16
PE Ratio: 11.95
EPS: $24.68
Dividend Yield: 0.488%
Revenue: $60.92B
Net Income: $990.08M
Debt to Equity: 7.61
Price to Book: 2.653
More about Apple Inc
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More about Alphabet Inc Class A
Alphabet Inc Class A Summary Alphabet Inc Class A Summary
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Key Information
Industry: Technology
Services: Computer Programming, Data Processing, etc.
Market Cap: $1,953,130,873,000
Price: $27.05
Dividend Yield: None
EPS: $5.79
P/E Ratio: 24.34
Beta: 0.24
Volume: 307,393,987,000
Net Change: $163.28
% Change: 0.56%
Yield: 0.135
More about Amazon.com Inc
Amazon.com Inc Summary Amazon.com Inc Summary
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Industry & Sector
Industry: TRADE & SERVICES
Sector: RETAIL-CATALOG & MAIL-ORDER HOUSES
Key Financials
Market Cap: $1,928,628,535,000
Current Price: $3,500
Dividend Yield: 2.9%
Price/Earnings Ratio: 55.78
EPS: $0.0529
Revenue: $574,784,995,000
Net Income: $209.62
EBITDA: $50.69
Debt/Equity: 0.139
More about Meta Platforms Inc.
Meta Platforms Inc. Summary Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, PCs, virtual reality headsets, wearables and home devices around the world. The company is headquartered in Menlo Park, California.
Sector: TECHNOLOGY
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Market Cap: 1,323,781,194,000
Current Price: $34.92
Dividend Yield: 0%
52-Week Range: $14.87 - $52.41
EPS: $0.29
Shares Outstanding: 13,490,199,800
PE Ratio: 478.47
Beta: 2.002
Volatility: 0.247
More about Tesla Inc
Company: Tesla Inc
Industry: Manufacturing, Motor Vehicles & Passenger Car Bodies
Revenue: $56,332,569,800
Net Profit Margin: 4.3%
Operating Margin: 30.49%
Return on Assets: 0.155
Market Cap: $96,772,997,000
Stock Price: $189.83
Earnings per Share: 1.115
Dividend Yield: 0.035%
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