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2025-01-12
Artificial intelligence (AI) could be the most transformational technology in a generation. AI chatbots like OpenAI's ChatGPT can already answer complex questions and instantly generate computer-generated text, images, and even new software code on command. The technology will only improve over time, but development isn't cheap because it requires enormous data centers filled with specialized chips from suppliers like Nvidia . Morgan Stanley predicts that Microsoft , Amazon , Alphabet , and Meta Platforms alone will spend a combined $300 billion on AI data center infrastructure and chips during 2025. That will benefit Nvidia, but significant amounts of money will also flow to other chipmakers, chip designers, and suppliers of networking equipment. Picking winners and losers won't be easy, but there's good news in that regard: Investors don't necessarily have to. The iShares Semiconductor ETF ( SOXX -0.85% ) is an exchange-traded fund (ETF) packed with almost every hardware stock involved in the AI revolution. It can do the picking for you and here's why it might be a great buy for 2025. An ideal ETF for the AI spending boom It's common for ETF s to hold hundreds or even thousands of individual stocks, but since this one is highly specialized, it holds just 30 names. It exclusively invests in companies that design, manufacture, and distribute semiconductors , which makes it highly concentrated. Therefore, investors should only buy it as part of a diversified portfolio of other funds and individual stocks. With that said, the iShares ETF can provide investors with all of the exposure they need to the hardware segment of the AI spending boom . Its top five positions account for 38.3% of the total value of its portfolio, and they include some of the biggest players in this space: Stock iShares ETF Portfolio Weighting 1. Broadcom 11.42% 2. Nvidia 7.83% 3. Advanced Micro Devices 7.11% 4. Qualcomm 6.11% 5. Texas Instruments 5.82% Data source: iShares. Portfolio weightings are accurate as of Dec. 24, 2024, and are subject to change. Broadcom makes AI accelerators (a type of chip) for hyperscale customers like Alphabet, which they use as an alternative to Nvidia's chips. Accelerators can be the cheaper option, and tech giants can customize them to suit their needs. Broadcom also makes networking equipment for data centers, including switches that regulate how fast information travels between chips and devices. Nvidia still makes the best AI chips in the world. It recently launched its new Blackwell graphics processing units ( GPU s) for data centers, which offer up to 30 times more performance than its original flagship H100 GPU. The Blackwell GB200 is likely to be the most sought-after AI chip next year, and the early sales estimates make Nvidia stock look cheap right now. Advanced Micro Devices is trying to compete with Nvidia in the market for data center GPUs. It plans to start shipping a Blackwell competitor in the second half of 2025 , and it will be called the MI350. But although AMD is chasing Nvidia in the data center business, it's already a leading supplier of AI chips for personal computers. This could be a big growth market in the future as more AI workloads shift from data centers to devices. Outside of its top five positions, the iShares ETF holds other important chip stocks. They include Taiwan Semiconductor Manufacturing , which fabricates many of the AI chips designed by Nvidia and AMD, and Micron Technology , which supplies industry-leading memory and storage chips for AI workloads . The iShares ETF can help investors beat the S&P 500 The iShares ETF has generated a compound annual return of 11.2% since it was established in 2001. That beats the average annual return of 8.5% in the S&P 500 over the same period. However, the ETF soared by an average of 22.7% per year over the last decade thanks to new technologies like cloud computing , enterprise software, smartphones, and AI , which accelerated the demand for chips. The S&P returned just 13.7% annually over the same period. It's unlikely the iShares ETF -- or any fund -- can grow at a compound annual rate of more than 20% in perpetuity. However, the chip sector might be in a golden age right now thanks to AI. Nvidia CEO Jensen Huang believes data center operators will spend $1 trillion to upgrade their infrastructure to meet demand from AI developers over the next few years. Therefore, the enormous spending forecast by Morgan Stanley for 2025 could grow even further in 2026, 2027, and beyond. On the flip side, if AI software isn't as revolutionary as experts predict, tech giants could reduce their spending on chips and other hardware. In that scenario, many of the stocks in the iShares ETF could lose a significant amount of value. That's why, as I mentioned earlier, investors should only buy this ETF as part of a balanced portfolio of other funds or individual stocks.m88 ppar

The decision to cull 240,000 chickens is a necessary yet heartbreaking measure to control the spread of the disease. It not only results in significant economic losses for the affected farmers but also raises ethical concerns about the welfare of the animals. However, experts emphasize that culling is a standard protocol in disease control to protect both animal and human populations from further harm.Musk causes uproar for backing Germany's far-right party ahead of key electionsIn the midst of ongoing conflicts and chaos, Syria has been facing a multitude of challenges, but one recent event has brought the country's most pressing issue to the forefront: a sudden shift of power in the region. The implications of this dramatic change are far-reaching and demand immediate attention from the international community.

Breaking News: BOJ Plans Rare Speech and Press Conference, Interest Rate Hike on the Horizon?abrdn Asia Focus (LON:AAS) Hits New 1-Year High – Still a Buy?In conclusion, the retired elderly man's decision to invest heavily in multiple insurance policies has shed light on the complexities and risks of unfettered financial decision-making. It is a reminder that financial planning requires careful consideration, informed choices, and a willingness to seek help when needed. As we reflect on this troubling situation, let it serve as a wake-up call for individuals and families to prioritize financial literacy, communication, and responsible long-term planning to safeguard their financial future.

One of the key takeaways from the meeting is the emphasis placed on promoting stable and healthy economic growth. The Chinese leadership has reiterated its commitment to implementing proactive fiscal policies and prudent monetary policies to support economic development. This commitment to stability and growth has been welcomed by investors, as it provides a sense of assurance and predictability in the market.However, as quickly as she rose to fame, Lin Jing'en's career took a nosedive. Rumors of diva behavior and clashes with industry insiders led to her being blacklisted by major production companies. Offers dried up, roles became scarce, and Lin found herself struggling to make ends meet.

Home | News | Trump Sides With Musk As Tech Billionaire Vows To Go To War To Defend H 1b Trump sides with Musk as tech billionaire vows to ‘go to war’ to defend H-1B Musk, himself once on an H-1B visa and whose electric vehicle company Tesla, has hired workers using the programme, defended the tech industry's need to bring in foreign workers By AP Published Date - 29 December 2024, 07:09 PM Washington: Elon Musk has received support from President-elect Donald Trump on his stance on H-1B visas, a day after the tech billionaire vowed to “go to war” to defend the programme used to bring skilled foreign workers to the US. Musk, who along with Indian-American tech entrepreneur Vivek Ramaswamy has been tapped by Trump to lead his Department of Government Efficiency (DOGE), argued last week that foreign workers are needed for tech companies like Musk’s SpaceX and Tesla. Musk on Friday blasted a user on X who used a video of Musk discussing SpaceX processes to go after the billionaire’s stance on the visa programme. Also Read Trump says he’s a believer in H-1B visas “The reason I’m in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B,” Musk wrote on X. He also used a profane quote from Tom Cruise’s character in the movie “Tropic Thunder” to attack his critics. “Take a big step back and F— YOURSELF in the face,” Musk said. Trump on Saturday sided with Musk, saying he fully backs the programme opposed by some of his supporters. “I’ve always liked the visas, I have always been in favour of the visas. That’s why we have them,” Trump told the New York Post newspaper. “I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great programme,” Trump said. The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. Technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. The tech industry has long called for more H-1B visas to attract highly skilled workers to the US. Trump’s first administration restricted the programme in 2020, arguing that it allows businesses to replace Americans with lower-paid foreign workers. Musk, himself once on an H-1B visa and whose electric vehicle company Tesla has hired workers using the programme, defended the tech industry’s need to bring in foreign workers. “Anyone – of any race, creed or nationality – who came to America and worked like hell to contribute to this country will forever have my respect. America is the land of freedom and opportunity. Fight with every fiber of your being to keep it that way!” he wrote on X on Friday. Follow Us : Tags Donald Trump Elon Musk H1B Visa Vivek Ramaswamy Related News Trump says he’s a believer in H-1B visas US Universities urge international students to return before Trump’s 2025 inauguration amid travel ban fears President-elect Trump transfers close to $4 billion worth Trump Media shares to trust Priyanka Chopra Jonas’ fans irked with her hubby Nick Jonas over endorsement of Elon Musk

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