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The Zacks Analyst Blog Highlights NVIDIA, Roundhill Magnificent Seven ETF, MicroSectors FANG+ ETN, Technology Select Sector SPDR Fund, Vanguard Information Technology Index Fund ETF

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For Immediate Release

Chicago, IL – August 4, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Roundhill Magnificent Seven ETF (MAGS - Free Report) , MicroSectors FANG+ ETN (FNGS - Free Report) , Technology Select Sector SPDR Fund (XLK - Free Report) , Vanguard Information Technology Index Fund ETF (VGT - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Big Tech Roars on AI Frenzy: ETFs to Play

Wall Street witnessed a tech-fueled surge late Wednesday, as AI leaders Microsoft and Meta Platforms delivered blowout earnings, adding about $450 billion in combined market capitalization. Shares of Microsoft and Meta soared — a clear signal that AI investments are paying off big.

Microsoft’s Cloud & AI Drive Record Results

Microsoft reported stellar Q4 FY2025 results, with earnings per share hitting $3.65 — beating estimates by $0.30 — and revenues climbing 18% YoY to $76.4 billion. The key growth driver? Its Azure cloud and AI infrastructure, with Azure projected to grow 37% in constant currency next quarter.

Microsoft now forecasts record capital expenditures of $30 billion this quarter as it aggressively expands its AI footprint. The company has also become the second-ever public firm to cross a $4 trillion market cap, joining NVIDIA.

Meta Surges on AI-Powered Advertising

Meta also delivered a strong Q2, reporting EPS of $7.14, far exceeding the $5.83 estimate. Revenues jumped 22% to $47.5 billion, fueled by AI-driven ad technologies that boosted campaign automation and recommendations.

Its user base continues to expand, with 3.48 billion daily active users across Facebook, Instagram, WhatsApp and Messenger. Meta also raised its 2025 capex forecast to as much as $72 billion, reflecting deeper AI investments.

The AI Boom: Still in Early Stages

Despite concerns about high capital expenditure, the long-term growth potential of AI remains enormous. According to the UNCTAD, the global AI market is expected to explode from $189 billion in 2023 to $4.8 trillion by 2033 — a 25-fold increase.

Microsoft’s partnership with OpenAI continues to fuel its AI ambitions, integrating ChatGPT across Azure and its Microsoft 365 ecosystem. At the same time, Microsoft is developing its own models like Phi AI and MAI-01 to compete with OpenAI and Google.

Consumer Push & Strategic Spending Ahead

On the consumer front, Microsoft is set to end Windows 10 support in October, likely boosting Windows 11 upgrades. AI features continue to roll out across Copilot, Edge and Windows, creating fresh revenue streams.

Looking ahead, Microsoft plans to spend $80 billion on AI infrastructure in 2025, joining Google and Amazon in a multi-billion-dollar arms race to dominate the AI future.

ETFs in Focus

Given this trend, investors may want to invest in Big Tech exchange-traded funds (ETFs) like Roundhill Magnificent Seven ETF, MicroSectors FANG+ ETN, Technology Select Sector SPDR Fund, Vanguard Information Technology Index Fund ETF.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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