Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

Microsoft Corporation

Key Points
Nvidia stock has skyrocketed in recent years, powered by billion-dollar earnings growth.
This is thanks to the company’s leadership in the high-potential market of AI.
Nvidia (NASDAQ: NVDA) has almost become a household name -- at least for investors -- over the past few years. As the maker of the world's top artificial intelligence (AI) chips, the company has seen earnings and its stock price skyrocket. Demand is high for AI compute as companies and governments aim to apply this technology to their needs, and Nvidia is benefiting from this momentum.
It's very clear that if you invested in Nvidia several years ago and held onto the shares, you've scored a win -- and this is with a bet of any size, from a few dollars to a major investment. Let's consider a $500 investment in Nvidia made 10 years ago and find out how much you would have now.
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What happened a decade ago
First, though, let's talk a bit more about the Nvidia growth story so far. The past 10 years have actually been key for the tech player since this period covers Nvidia's presence in the world of AI. About a decade ago, the company decided to tailor its graphics processing units (GPUs) to specifically suit this growing market. At the time, AI wasn't making headlines as it does today, so this was a risky bet -- and it turned out to be a successful one.
Over the past few years, companies have recognized the potential of AI to improve their businesses, so they've turned to Nvidia for the GPUs needed to develop and use this technology. Customers may find these high-powered chips across cloud service providers, from Amazon to Microsoft, for example.
All of this has helped Nvidia's revenue and profit soar well into the billions of dollars. In the latest full year, these metrics advanced in the triple digits to $130 billion and $72 billion, respectively.
Now, let's move along to stock performance. Over the past 10 years, the shares have skyrocketed, so if you invested $500 in Nvidia at the start of that period, you would have more than $114,000 right now. That's enormous, especially considering the initial investment wasn't a huge one.
Does Nvidia still have room to run?
Today, however, you might be wondering if buying and holding Nvidia stock still is a good idea. A reasonable question is: How long can this supercharged stock continue to soar? It's impossible to predict Nvidia's moves over the short term -- the stock could flounder or stagnate at a certain point. But there is reason to believe that this market leader still has plenty of room to run over the long term.
In fact, there are several reasons to be optimistic about Nvidia's future earnings and stock performance. One major point is that high-performance GPUs are needed for AI models to complete their tasks -- this means that the GPU could be an essential tool well into the future as AI is put to work. Of course, other companies make AI chips, but Nvidia has maintained its lead, and the company's focus on frequent innovation should help it remain on top.
It's also important to remember that Nvidia's customers, such as Amazon and Microsoft as I mentioned above, are technology titans with the financial strength to invest in the best products available. And their desire to win in AI also pushes them toward the fastest GPUs available. All of this works in Nvidia's favor.
Finally, Nvidia's role in AI likely will continue to evolve in a positive way. The company has developed various platforms for industries -- for example, it's working with major automakers on their autonomous vehicle projects. And Nvidia is getting in early on another area that could deliver explosive growth in the years to come: robotics. The company has developed three computers that take a robot from the training phase to the use stage. Nvidia has even predicted that this will become the next $10 trillion industry.
All of this means Nvidia stock may still be a great place to park your $500 for a decade -- or even longer.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
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Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

If You Invested $500 in Nvidia 10 Years Ago, Here's How Much You'd Have Now.

An Anthropic IPO Could Be Here Sooner Than We Thought!

Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 36,250,000 units, or a 20.2% increase week over week. Among the largest underlying components of DGRW, in morning trading today Microsoft is up about 0.7%, and Apple is lower by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the COIO ETF, which added 20,000 units, for a 40.0% increase in outstanding units.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DGRW, COIO: Big ETF Inflows

Key Points
Nvidia's success throughout the artificial intelligence (AI) revolution rests almost entirely on its chip dominance.
Alphabet's custom tensor processing units (TPUs) are gaining momentum from AI hyperscalers.
Some investors worry that Nvidia could be dethroned by Alphabet in the chip industry.
For the last three years, Nvidia (NASDAQ: NVDA) has been the most dominant company in the artificial intelligence (AI) landscape. The company's graphics processing units (GPUs) are the backbone on which generative AI is developed.
Hyperscalers including OpenAI, Oracle, Meta Platforms, and cloud platforms such as Microsoft Azure and Amazon Web Services (AWS) have collectively spent hundreds of billions of dollars clustering Nvidia GPUs inside of data centers to build their AI infrastructure.
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While Advanced Micro Devices is largely perceived as Nvidia's chief rival in the AI chip market, a new threat is emerging: Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). The internet giant is making waves in the semiconductor industry thanks to rising interest in its custom hardware, known as tensor processing units (TPUs).
Let's take a look at what Alphabet's entrance in the chip market means for Nvidia as investments in AI infrastructure continue to unfold. Should Nvidia investors be worried? Read on to find out.
What is the difference between a GPU and a TPU?
Nvidia's GPUs are versatile pieces of hardware. These chips are designed to work in clusters in parallel with the company's CUDA software architecture. Taken together, Nvidia's ecosystem can be used to train large language models (LLMs) or help build more robust applications across AI robotics, autonomous driving, and quantum computing.
TPUs, by contrast, are much more specialized. Rather than being a purpose-built piece of hardware, Alphabet's TPUs should be classified as a custom application-specific integrated circuit (ASIC). This makes TPUs useful in extremely bespoke workloads such as deep learning.
Alphabet's TPUs are seeing strong demand, but there's a catch
Throughout the AI revolution, one of Alphabet's biggest winners has been its cloud division: Google Cloud platform. In recent months, Google Cloud has won notable deals with OpenAI as well as a $10 billion contract with Meta Platforms.
What investors might not fully comprehend is that the introduction of hardware now makes TPUs an interesting selling point within Google's broader cloud ecosystem.
Notably, Apple used TPUs to train its Apple Intelligence models. Meanwhile, Anthropic announced plans to expand its usage of Google Cloud in a deal featuring up to 1 million TPUs. Lastly, rumors are swirling that Meta is considering complementing its existing reliance on Google Cloud by deploying its own TPU clusters.
On the surface, accelerating TPU demand from big tech might sound alarming for Nvidia investors. However, there are some finer details that smart investors shouldn't overlook.
While Anthropic's relationship with Google Cloud is significant, the company also has strong ties with Nvidia. Just weeks ago, Anthropic agreed to purchase $30 billion of compute capacity from Microsoft Azure, which runs heavily on Nvidia's GPUs.
On top of that, OpenAI recently struck a $38 billion deal with AWS to access Nvidia's new GB200 and GB300 chips.
Furthermore, while Nvidia does not reveal the specifics around its customer concentration, many analysts on Wall Street suspect that the hyperscalers -- including Alphabet -- are among its largest chip buyers.
These are important details to understand. While TPUs represent potentially transformative dynamics in the AI chip market, many of their users -- including Google itself -- actually complement this custom hardware with Nvidia's general purpose GPUs. Against this backdrop, TPUs don't appear to be replacing GPUs at all.
AI chips is not a winner-take-all market
Management consulting firm McKinsey & Company is forecasting AI infrastructure to be a $7 trillion market by 2030, with roughly $5 billion of this spend allocated toward AI workloads.
Given the hyperscalers are accelerating their capital expenditures (capex), I feel confident that demand for Nvidia's GPUs and accompanying data center services will remain robust for the foreseeable future.
It's possible -- even likely -- that rival accelerators from AMD in combination with custom ASICs such as TPUs will eventually erode Nvidia's pricing power in the chip market down the road.
Nevertheless, the introduction of TPUs is not a checkmate move by Google. If anything, complementing existing Nvidia infrastructure with custom chip designs reinforces how large of an opportunity AI infrastructure is becoming. In other words, AI chips are not a winner-take-all market.
For these reasons, I don't think Nvidia investors need to panic. The company still remains the king of the chip realm and appears well positioned to thrive in the AI infrastructure era.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $499,978!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,126,609!*
Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Did Alphabet Just Say "Checkmate" to Nvidia?

Oracle's ORCL second-quarter fiscal 2026 results presented a mixed picture for investors, with shares declining 11% pre-market despite robust cloud infrastructure growth and record-breaking contracted backlog. The database and cloud infrastructure provider reported total revenues of $16.1 billion for the quarter ending Nov. 30, 2025, representing growth of 14% in U.S. dollars and 13% in constant currency (cc). The figure missed the Zacks Consensus Estimate for revenues by 0.55%
While cloud revenues accelerated significantly, software revenue weakness and aggressive capital expenditure plans raised concerns about near-term profitability, suggesting current shareholders should maintain positions while awaiting improved entry points following execution progress.
The company's cloud business demonstrated remarkable momentum, with total cloud revenues reaching $8 billion, up 34% in U.S. dollars and 33% in cc. Cloud infrastructure revenues surged 66% in cc to $4.1 billion, with GPU-related cloud revenues growing 177%. Cloud applications revenues reached $3.9 billion, up 11%. Cloud revenues now account for half of Oracle's total revenues, marking a fundamental transformation in the company's business model. Software revenues declined 3% in U.S. dollars and 5% in cc to $5.9 billion, reflecting ongoing challenges in legacy product categories.
Oracle's remaining performance obligations reached $523 billion, up 438% year over year and $68 billion sequentially. These increases were driven by new commitments from Meta, NVIDIA, and other customers. Importantly, RPO, expected to be recognized within 12 months, grew 40% year over year, compared with 25% last quarter, indicating accelerated revenue conversion. The company expects $4 billion of additional revenues in fiscal 2027 based on the added backlog that can be monetized quickly starting next year.
Capital Expenditure Acceleration Strains Cash Flow
The quarter's most concerning metric was free cash flow, which registered a negative $10 billion as capital expenditures reached $12 billion. Operating cash flow totaled $2.1 billion. The company increased its full-year fiscal 2026 capital expenditure guidance by $15 billion to approximately $50 billion, up from the $35 billion forecast following first-quarter results. Management emphasized that the vast majority of CapEx investments are for revenue-generating equipment going into data centers, not for land, buildings, or power, which are covered via leases. Oracle does not pay for these leases until completed data centers and accompanying utilities are delivered.
Non-GAAP earnings per share reached $2.26, up 54% in U.S. dollars and 51% in cc, while GAAP earnings per share totaled $2.10, up 91% in U.S. dollars and 86% in cc. Both metrics benefited from a $2.7 billion pre-tax gain from the sale of Oracle's interest in Ampere.
The Zacks Consensus Estimate for ORCL's fiscal 2026 earnings is pegged at $6.81 per share, marking an upward revision of 1 cent over the past 30 days. The earnings figure suggests 12.94% growth over the figure reported in fiscal 2025.
Oracle Corporation Price and Consensus
For the fiscal third quarter, Oracle guided total cloud revenue growth of 37% to 41% in cc and 40% to 44% in U.S. dollars. Total revenues are expected to grow 16% to 18% in cc and 19% to 21% in U.S. dollars. Non-GAAP earnings per share guidance ranges from $1.70 to $1.74 in U.S. dollars. Management maintained its full-year fiscal 2026 revenue expectation of $67 billion.
Oracle's strategic initiatives center on its AI data platform and multicloud database partnerships. Chairman Ellison emphasized that Oracle databases contain most of the world's high-value private data, positioning the company uniquely for AI reasoning applications on enterprise data while maintaining security. The company's multicloud database business grew 817% in the quarter. Oracle is the only applications company selling complete application suites, combining back-office, front-office, and industry-specific solutions with embedded AI capabilities.
Valuation, Competitive Landscape, and Investment Recommendation
Shares of Oracle have returned 26.4% in the past six-month period compared with the Zacks Computer and Technology sector’s appreciation of 27.3% and the Zacks Computer - Software industry’s growth of 1.4%.
ORCL’s 6-Month Price Performance
Image Source: Zacks Investment Research
The cloud infrastructure market remains intensely competitive, with dominant players commanding substantial market positions. Amazon AMZN-owned Amazon Web Services maintains approximately 30% market share with comprehensive service breadth, while Microsoft MSFT Azure leverages enterprise relationships and OpenAI partnerships for differentiated AI capabilities. Alphabet GOOGL-owned Google Cloud has achieved 13% market share with strong momentum in data analytics and machine learning services. Oracle competes through its multicloud database offerings embedded in Amazon, Google, and Microsoft clouds, with 45 live multicloud regions and 27 more planned.
From a valuation standpoint, ORCL stock is currently trading at a premium with a forward 12-month Price/Sales ratio of 8.42x, which is higher than the industry average of 7.61x. Oracle carries a Value Score of D.
ORCL’s P/S Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
Conclusion
Given elevated capital expenditures pressuring near-term cash flows, competition from Microsoft, Amazon, and Google in cloud infrastructure, and premium valuation metrics, current investors should hold positions while prospective buyers await a more attractive entry point following improved operational execution and cash flow generation. ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oracle Shares Plunge 11% After Q2 Revenues Miss: Should You Hold?

Figma FIG shares have lost 29.8% in the past three months, underperforming the Zacks Internet - Software industry’s decline of 12.5%.
Figma Three-Month Performance Chart
Image Source: Zacks Investment Research
Despite its decline in share price, FIG stock has been trading at a premium as reflected by value score F. Figma stock is trading at a premium, with a forward 12-month Price/Sales of 12.85X compared with the Computer and Technology sector’s 4.92X.
Figma
Image Source: Zacks Investment Research
The underperformance and overvaluation of FIG stock raises the question: Should investors buy, sell or hold Figma stock? Let’s discuss the fundamentals in detail.
Figma Faces Operational Challenges
Figma’s non-GAAP operating profit contracted 28.9% year over year to $34.02 million. The non-GAPP operating profit margin contracted to 12% from 24% in the year-ago quarter. The contraction in the margin is attributable to cost pressures emerging from the roll out of Figma Make and other AI features in the platform.
The company is also facing competitive challenges from established players, including Adobe ADBE, Microsoft MSFT and Atlassian TEAM. Adobe’s Firefly and Microsoft Copilot have been playing a crucial role in driving their respective top-line growth and profitability, causing them to burn into Figma’s market share.
Microsoft’s Teams and Office 365 suite provides collaboration and enterprise workflows, which directly compete with Figma across whiteboarding, developer workflows, AI productivity, and enterprise adoption, leaving Figma with all these areas to defend. Adobe recently partnered with Google Cloud to enhance Adobe’s creative ecosystem with AI.
Atlassian is focusing on adding generative AI features to some of its collaboration software. Atlassian is partnering with Google Cloud to bring Atlassian’s AI-powered teamwork platform, including Jira, Confluence, and Loom, onto Google’s AI-optimized infrastructure. This will allow for deeper Gemini integrations and smoother collaboration across platforms.
These factors are a threat to Figma’s growth prospects. However, not everything is gloom and doom for Figma.
Figma, Inc. Price and Consensus
Figma Benefits From Paid Customer Count
Despite facing stiff competition from large players, Figma is able to grow its customer base robustly. As of Sept. 30, 2025, the company had 12,910 paid customers with more than $10,000 in annual recurring revenues (ARR) and 1,262 paid customers with more than $100,000 in ARR.
Figma commanded a net dollar retention rate of 131% for customers spending $10,000 or more annually in the third quarter of 2025. In the third quarter of 2025, FIG’s customer base grew significantly, with the company adding more than 90,000 paid teams in just two quarters, bringing the total to 540,000 paid customers.
This growth was driven by the adoption of new products like Figma Make and AI features, which attracted new users and expanded usage within existing teams. Earlier in 2025, Figma launched four new products — Figma Make, Figma Draw, Figma Sites and Figma Buzz — doubling its product offerings.
The launch of Figma Make has been a strong move. Approximately 30% of customers spending $100,000 or more in ARR were using Figma Make weekly by the end of September. Figma also launched the Dev Mode MCP server, which speeds up developer workflows by bringing context from Figma Design into any surface that consumes MCP.
Conclusion: Hold FIG Stock for Now
Figma’s stock slump, premium valuation, margin pressure, and rising competition make near-term upside uncertain, but strong customer growth and product adoption show resilience. Given mixed fundamentals, elevated risks, and solid long-term potential, we suggest investors retain this Zacks Rank #3 (Hold) stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Figma Plunges 30% in 3 Months: Should You Hold or Fold the Stock?

Amazon AMZN and Microsoft MSFT have announced a combined investment of $52.5 billion aimed at accelerating India’s AI and cloud ecosystem. The announcements highlight India’s growing importance as a global hub for advanced digital technologies.
Amazon Commits $35 Billion Investment by 2030
Amazon revealed that it plans to invest $35 billion in India by 2030 to drive AI-led digitization, and expand exports, per Reuters, as quoted on Yahoo Finance. Note that Amazon has invested $40 billion in India since 2010, and announced ???a $26 billion investment in 2023, per the above-mentioned source.
This new commitment cements Amazon’s position as one of the largest foreign investors in India. A significant portion of the fresh investment will be directed toward strengthening local cloud and AI infrastructure.
Microsoft Announces $17.5B to Boost India’s AI Ecosystem
Microsoft, also pledged $17.5 billion to boost India’s AI capabilities and cloud infrastructure, this week, by 2030. The investment includes expanding hyperscale infrastructure and embedding AI into national platforms, per CNBC. Microsoft pledged $3 billion in investments in January 2025. The new hyperscale cloud region in Hyderabad of India is scheduled to become operational by mid-2026.
Google to Spend $15 Billion on AI Data Center
In October, Alphabet GOOGL said that it is deepening its commitment to India with a massive $15 billion investment to build a new AI-focused data center, marking the company’s largest bet on the country to date, per Reuters.
India Emerges as a Global AI and Cloud Investment Hotspot
India’s appeal as an AI and cloud powerhouse has grown sharply in recent months. Intel recently entered inti a major collaboration with Tata Electronics as part of the latter’s $14 billion semiconductor manufacturing project. India is also accelerating efforts to build a domestic semiconductor industry, thanks to substantial government subsidies and multiple private and state-backed initiatives.
ETFs in Focus
Against this backdrop, investors can tap India-based exchange-traded funds (ETFs) like VanEck Digital India ETF DGIN, iShares India 50 ETF INDY and Invesco India ETF PIN.
Boost Your Portfolio with Our Top ETF Insights
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tech Giants Unveil Major Investment Plans for India: ETFs in Focus

Key Points
Investing in ETFs can help mitigate risk while still amplifying your earnings.
Growth ETFs sometimes carry more risk, but they also have potential for greater rewards.
The right investment can supercharge your portfolio in 2026 and beyond.
Investing in exchange-traded funds (ETFs) can be a smart way to diversify your portfolio, gain exposure to a particular sector of the market, or own a small slice of the market as a whole.
Growth ETFs, specifically, are designed to earn above-average returns over time, as they focus on stocks with higher growth potential. Because you're investing in many stocks at once through an ETF, that can help limit risk while still capitalizing on growth companies.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
While there are plenty of growth ETFs to choose from, these three could be smart investments heading into 2026 and beyond.
1. Vanguard Russell 2000 ETF
The Vanguard Russell 2000 ETF (NASDAQ: VTWO) contains a whopping 1,992 holdings, most of which are small-cap stocks. Small-cap stocks are generally defined as those with a market capitalization of around $300 million to $2 billion, and one of their biggest advantages is their potential for explosive growth.
Every large- or mega-cap stock had to start somewhere, and small-cap stocks provide investors the opportunity to invest in future industry leaders before they take off. While not all small-cap stocks turn into superstar performers, it only takes one to amplify your portfolio.
The Vanguard Russell 2000 ETF offers a well-diversified approach to small-cap stocks, covering all sectors of the market. While close to 20% of the fund is allocated to stocks in the industrials sector, it's not overly tilted toward any single industry -- and that diversification can help mitigate risk.
Over the last 10 years, it's earned an average rate of return of 9.18% per year. At that rate, if you were to invest $200 per month, you'd accumulate around $209,000 after 25 years.
2. iShares Future AI and Tech ETF
The iShares Future AI and Tech ETF (NYSEMKT: ARTY) focuses on domestic and international companies that are contributing to the advancement of artificial intelligence (AI) technology -- including AI software, services, infrastructure, and more.
The future of AI is still uncertain for now, but if you've been looking to gain exposure to this industry without having to sift through individual stocks, an AI-focused ETF could be a simpler way to buy into the sector. This fund contains only 48 holdings, making it less diversified than some other funds; however, it's highly targeted toward the AI subsector.
This ETF is on the riskier side, partly because of its smaller portfolio and partly because the AI sector, in general, can be incredibly volatile. It's also a newer fund, launched in 2018, so it doesn't have the extensive track record of some other ETFs.
That said, if the AI industry continues to boom, this investment could prove lucrative. Its average return over the last five years is a lackluster 8.07% per year, but over the last 12 months, it's earned an impressive 33.77% return.
While there are no guarantees that this investment will continue to perform well (and even if it does, the short term will likely be filled with ups and downs), it has the potential for substantial growth as the industry finds its footing.
3. Vanguard Information Technology ETF
For a broader tech-focused ETF, the Vanguard Information Technology ETF (NYSEMKT: VGT) could be a smart option. This ETF contains 314 stocks from all corners of the technology sector, and its top holdings include industry leaders like Nvidia, Apple, and Microsoft.
This ETF can serve as a middle ground for investors looking for tech exposure without zeroing in on any specific subsector. With much of the portfolio allocated to robust large-cap stocks, this can also help limit some of the risk of investing in the tech industry.
Over the last 10 years, this ETF has earned a much higher-than-average return of 22.18% per year. If you were to invest $200 per month at that rate, you'd accumulate around $1.6 million after 25 years. Just keep in mind that the tech sector can be incredibly volatile in the short term, so it's wise to keep your expectations in check with this type of investment.
Growth ETFs can be a fantastic way to generate higher returns in the stock market. Whether you're looking for small-cap growth, AI exposure, or diversification within the tech sector, the right fund can supercharge your earnings over time.
Should you invest $1,000 in Vanguard Information Technology ETF right now?
Before you buy stock in Vanguard Information Technology ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Information Technology ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Katie Brockman has positions in Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Unstoppable Growth ETFs to Stock Up On in 2026 and Beyond

For Immediate Release
Chicago, IL – December 11, 2025 – Zacks Director of Research Sheraz Mian says, "Q4 earnings for the ‘Magnificent 7’ group of companies are expected to be up +16.6% from the same period last year on +16.2% higher revenues."
Q4 Earnings: Tech Expected to Remain Growth Driver
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
For 2025 Q4, total S&P 500 earnings are currently expected to be up +6.9% from the same period last year on +7.7% higher revenues. This would follow +13.9% earnings growth in 2025 Q3 on +7.8% revenue growth.
The Tech sector has been a key growth driver since 2023, and the sector is on track to be playing that role in 2025 Q4 and beyond as well. Q4 earnings growth drops to +3.6% from +6.9% once the Tech sector’s enormous contribution is removed from the aggregate numbers. The Tech sector is currently expected to account for almost half of S&P 500 earnings growth in 2026.
The revisions trend for 2025 Q4 turned modestly negative in recent weeks, after staying positive earlier in the period. The revisions trend was consistently positive in the comparable period of the preceding quarter (2025 Q3).
Q4 earnings for the ‘Magnificent 7’ group of companies are expected to be up +16.6% from the same period last year on +16.2% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +3.4% (vs. +6.9%).
Tech Driving Earnings Growth
The Tech sector has been driving aggregate earnings growth since 2023 Q3, and the trend is expected to continue in 2025 Q4 and beyond. For Q4, Tech sector earnings are expected to be up +13% from the same period last year on +15.8% higher revenues, the 10th quarter in a row of double-digit earnings growth.
This would follow the sector’s +22.6% earnings growth on +12.6% higher revenues in 2025 Q3.
In addition to the Tech sector’s strong growth profile, the sector is also among the few sectors whose earnings outlook is steadily improving. This shows up in the revisions trend that continues to remain positive for the Tech sector, both for Q4 as well as for full year 2026.
For calendar year 2026, the Zacks Tech sector is currently expected to enjoy +17.4% earnings growth on +13.8% revenue growth, which would follow the sector’s expected +19.2% earnings growth on +13.8% higher revenues.
The Tech sector has not only been the largest contributor to aggregate earnings growth, but it has also been enjoying persistent positive estimate revisions, a trend that continues for 2026.
The Earnings Big Picture
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 35.6% of the index’s total earnings over the coming four-quarter period and currently accounts for 44.6% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members, such as NVIDIA NVDA and Microsoft MSFT, enjoy a strong market following and support.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Earnings Trends Highlights: NVDA and MSFT

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
For 2025 Q4, total S&P 500 earnings are currently expected to be up +6.9% from the same period last year on +7.7% higher revenues. This would follow +13.9% earnings growth in 2025 Q3 on +7.8% revenue growth.
The Tech sector has been a key growth driver since 2023, and the sector is on track to be playing that role in 2025 Q4 and beyond as well. Q4 earnings growth drops to +3.6% from +6.9% once the Tech sector’s enormous contribution is removed from the aggregate numbers. The Tech sector is currently expected to account for almost half of S&P 500 earnings growth in 2026.
The revisions trend for 2025 Q4 turned modestly negative in recent weeks, after staying positive earlier in the period. The revisions trend was consistently positive in the comparable period of the preceding quarter (2025 Q3).
Q4 earnings for the ‘Magnificent 7’ group of companies are expected to be up +16.6% from the same period last year on +16.2% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +3.4% (vs. +6.9%).
Tech Driving Earnings Growth
The Tech sector has been driving aggregate earnings growth since 2023 Q3, and the trend is expected to continue in 2025 Q4 and beyond. For Q4, Tech sector earnings are expected to be up +13% from the same period last year on +15.8% higher revenues, the 10th quarter in a row of double-digit earnings growth.
This would follow the sector’s +22.6% earnings growth on +12.6% higher revenues in 2025 Q3. But as the chart below shows, the sector’s growth trajectory is expected to continue in the coming quarters.
Image Source: Zacks Investment Research
In addition to the Tech sector’s strong growth profile, the sector is also among the few sectors whose earnings outlook is steadily improving. This shows up in the revisions trend that continues to remain positive for the Tech sector, both for Q4 as well as for full year 2026.
For calendar year 2026, the Zacks Tech sector is currently expected to enjoy +17.4% earnings growth on +13.8% revenue growth, which would follow the sector’s expected +19.2% earnings growth on +13.8% higher revenues.
Image Source: Zacks Investment Research
The Tech sector has not only been the largest contributor to aggregate earnings growth, but it has also been enjoying persistent positive estimate revisions, a trend that continues for 2026. The chart below shows the evolution of aggregate 2026 Tech sector earnings estimates since the start of July 2025.
Image Source: Zacks Investment Research
The Earnings Big Picture
The chart below shows expectations for 2025 Q4 in terms of what was achieved in the preceding four periods and what is currently expected for the next three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
The Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 35.6% of the index’s total earnings over the coming four-quarter period and currently accounts for 44.6% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members, such as NVIDIA NVDA and Microsoft MSFT, enjoy a strong market following and support.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence
Support
Cash flows

	S/L 5%RUB 502.49	S/L 10%RUB 526.42	S/L 15%RUB 550.34
Day	0.30%	0.00%	0.00%
Week	18.45%	0.34%	0.00%
Month	51.72%	15.32%	2.97%

Microsoft Corporation

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