- Big Tech Keeps Piling On AI Debt. Spending Is Set to Soar.
May 11, 2026
Gone are the days when operating cash flow could cover the bills. 2026 is shaping up to be a milestone year.
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- Alphabet Is on the Brink of Beating NVIDIA in Market Value: ETFs to Buy
May 11, 2026
In a dramatic turn of events last week, Alphabet GOOGL briefly surpassed NVIDIA NVDA in after-hours trading, momentarily claiming the title of the world’s most valuable company, as cited in CNBC. This milestone follows a staggering 160% rally in GOOGL shares over the past year, signaling that investors are increasingly betting on Alphabet’s integrated AI strategy.
This neck-and-neck race for market supremacy puts a bright spotlight on exchange-traded funds (ETFs) with significant Alphabet exposure. For investors, these funds offer a strategic way to benefit from Alphabet’s momentum while maintaining a diversified portfolio, potentially driving increased demand for these investment vehicles.
Before identifying these ETFs for your portfolio, investors may want to understand what drove this surge and what could sustain Alphabet’s momentum in the years ahead. To answer these questions, we analyze the factors behind the latest rally and explore the company’s long-term growth drivers beyond AI alone.
Story Behind Alphabet’s Recent Ascension
Alphabet’s journey from the world’s second-largest company in November 2025 to briefly overtaking NVIDIA in May 2026 has been driven by several key catalysts. In particular, the turning point came after GOOGL announced blockbuster first-quarter 2026 results on April 30.
Alphabet’s revenues reached $110 billion, reflecting 22% growth, while its operating margin remained strong at 36.1%. The company also doubled its capital expenditures to $35.7 billion, signaling aggressive AI infrastructure investment without significantly hurting profitability.
Prior to this, in March, Alphabet completed its acquisition of Wiz, a premier cloud and AI security platform. This must have significantly bolstered investor confidence by integrating advanced, AI-driven threat detection across its cloud infrastructure. This buyout created a unified security powerhouse that enhances Google Cloud's ability to protect complex multicloud environments, driving further enterprise adoption and opening high-margin revenue streams in the cybersecurity sector.
Earlier, a landmark antitrust ruling last September removed a major regulatory overhang, freeing Alphabet to go all-in on AI. Since then, its custom Tensor Processing Units (TPUs) have emerged as a viable alternative to NVIDIA chips, and a reported 200 billion cloud commitment from AI firm Anthropic added to a $462 billion cloud backlog. These factors, combined with Alphabet’s profitable core businesses — Search, YouTube and Waymo — likely helped the company briefly surpass NVIDIA in valuation last week.
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Outlook: Can Alphabet Keep the Momentum?
Looking ahead, Alphabet’s presence across the entire AI stack — including chips, models, cloud and distribution — gives it a unique competitive advantage. Unlike NVIDIA, which remains primarily an AI infrastructure play, Alphabet can translate its AI investments directly into business outcomes by improving advertising, search and cloud margins. Beyond AI, additional growth drivers such as Waymo’s self-driving expansion and YouTube’s advertising resilience should help support the stock’s rally over the next few years.
ETFs to Buy
Considering the aforementioned discussion, Alphabet is on a powerful upward trajectory. However, the stock is currently trading at a premium valuation following its 160% rally, with its forward price/earnings (P/E) currently at 28, which is higher than that of NVDA’s P/E of 24. Therefore, investing directly in GOOGL right now may cost an investor. Also, Anthropic-related revenue concentration poses a risk.
Against this backdrop, investing in an ETF that holds Alphabet alongside other industry leaders can provide exposure to the same upside potential while reducing the risk associated with a single-stock pullback, such as one caused by an AI slowdown or regulatory action. This approach allows investors to benefit from broader industry growth without having to rely on just one winner.
Here are four ETFs that you may add to your portfolio:
Invesco NASDAQ Internet ETF PNQI
This fund, with a market value worth $564.7 million, offers exposure to 78 companies engaged in Internet-related businesses that are listed on the New York Stock Exchange (“NYSE”). Alphabet holds the second position in the ETF, with 9.84% weightage.
PNQI has gained 1.3% over the past year. The fund charges 60 basis points (bps) as fees. It holds a Zacks ETF Rank #2 (Buy).
Motley Fool 100 Index ETF TMFC
This fund, with asset under management worth $2.07 billion, offers exposure to 101 largest and most liquid U.S. companies that are either active stock recommendations in one of The Motley Fool, LLC research service or rank among the 150 highest-rated U.S. companies in the Motley Fool, LLC, analyst opinion database, Fool Intent. Alphabet holds the second position in the ETF, with 9.30% weightage.
TMFC has soared 28.8% over the past year. The fund charges 50 bps as fees. It holds a Zacks ETF Rank #2.
iShares U.S. Technology ETF IYW
This fund, with net assets worth $23.66 billion, offers exposure to 139 U.S. electronics, computer software and hardware, and information technology companies. Alphabet holds the third position in the ETF, with 7.46% weightage.
IYW has surged 53.7% over the past year. The fund charges 38 bps as fees. It sports a Zacks ETF Rank #1 (Strong Buy).
Vanguard Mega Cap Growth Index Fund ETF MGK
This fund, with net assets worth $31.9 billion, offers exposure to the 59 largest growth stocks in the U.S. market. Alphabet holds the fourth position in the ETF, with 5.50% weightage.
MGK has surged 30.7% over the past year. The fund charges 5 bps as fees. It carries a Zacks ETF Rank #2.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Invesco NASDAQ Internet ETF (PNQI): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Mega Cap Growth Index Fund ETF Shares (MGK): ETF Research Reports
Motley Fool 100 Index ETF (TMFC): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- By the numbers: Corporate profits haven't been this smoking hot in years
May 11, 2026
The last time corporate profits looked this good, the world was only just turning the corner on the COVID-19 pandemic.
S&P 500 members are tracking toward 26% year-over-year earnings growth in the first quarter, making it the best earnings season since 2021, said the Bank of America team in a note on Monday.
By the numbers: With results in from 445 S&P 500 companies (86% of index earnings), first quarter earnings season has “blown past expectations,” said BofA strategist Jill Carey Hall.
The numbers to know include:
1) The S&P 500 is on pace to deliver 26% earnings per share growth year over year (18% excluding large one-time gains recognized by Amazon, Google, and Meta) versus consensus forecasts of just 12% on April 1;
2) Strength isn't confined to megacap tech companies: The median company is growing earnings per share by a solid 12% year over year;
3) 64% of companies have beaten both earnings per share and sales expectations, nearly 20 percentage points ahead of the historical average of 42% since 2001; and
4) Sales growth adjusted for foreign exchange fluctuations and inflation is on pace to rise 7% from the prior year.
All of these metrics are the best since 2021, noted Hall.Earnings have been hot!·BofA
Read more: Live coverage of corporate earnings
Bottom line: No doubt enthusiasm over the stability of corporate profits amid the Iran conflict has fueled the S&P 500 to record highs. That and the next wave of AI mania, which could catch another breeze of insanity when Nvidia (NVDA) reports earnings next week.
But the economic backdrop is far from perfect, and the first quarter could prove to be the peak for corporate earnings growth this year.
Said Hall, “While 1Q results suggest robust AI demand and a broadening Industrial recovery, the consumer outlook remains murky. We heard some talk of a "C"-economy from Hilton (i.e., lower and higher income beginning to converge), but most commentary still points to a "K", with McDonalds flagging more lower-income weakness. Planet Fitness scrapped plans to raise prices after weak membership growth, but premium gym Life Time painted a much rosier picture. Although April jobs beat expectations and layoff talk remains contained outside of tech, BAC aggregated credit and debit card data notably softened last week — could just be a blip, or an early sign that higher gas is taking a toll.”
Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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- Advanced Micro Devices and Other Growth Stocks Are Flying High. History Says Hold on to Them.
May 11, 2026
If it feels like growth stocks can’t continue their outperformance much longer, ignore that feeling. The Vanguard S&P 500 Growth Index Fund Exchange-Traded Fund, home to companies with high sales growth including Nvidia Advanced Micro Devices Microsoft and Eli Lilly is up 13% in the past month. A couple of factors have driven the performance of the growth stocks.
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- SA analyst upgrades/downgrades: GOOG, CRWD, SNDK, XYZ
May 11, 2026
[Man looking at currency trading app on his smart phone from his home office]
Alistair Berg
Gary Alexander has upgraded CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]), citing its resilience amid sector-wide sell-offs, while Jack Bowman reversed his previous skepticism on Block (XYZ [https://seekingalpha.com/symbol/XYZ]) following strong Cash App performance. On the downgrade side, Future Stack Investment has moved Sandisk (SNDK [https://seekingalpha.com/symbol/SNDK]) to Hold despite record margins, and JR Research suggests waiting on Alphabet (GOOGL [https://seekingalpha.com/symbol/GOOGL]) as its AI-fueled rally pushes valuations to premium levels.
UPGRADES
*
CROWDSTRIKE HOLDINGS (CRWD [https://seekingalpha.com/symbol/CRWD]): UPGRADE TO BUY BY GARY ALEXANDER [https://seekingalpha.com/article/4902159-crowdstrike-durable-growth-justifies-the-premium-upgrade]. The analyst cites CrowdStrike’s ability to outperform cybersecurity peers during sector-wide sell-offs driven by AI disruption concerns, along with its massive $325 billion total addressable market opportunity where current revenue represents just 2% penetration.
> _“Importantly, in a period when many investors have been concerned about the impacts of a tough macro on enterprise software sales, not to mention the fear surrounding the potential for AI to come in and displace incumbent software platforms, CrowdStrike achieved one point of growth acceleration versus 22% y/y growth in Q3, which in turn lifted from 21% growth in Q2 and 20% growth in Q1.”_
*
BLOCK (XYZ [https://seekingalpha.com/symbol/XYZ]): UPGRADE TO BUY BY JACK BOWMAN [https://seekingalpha.com/article/4901931-block-q1-i-believe-dorsey-upgrade]. The upgrade is driven by Cash App’s impressive 18% year-over-year growth in primary banking actives and confidence in Jack Dorsey’s AI-focused corporate restructuring, though lending risk remains a concern as loss rates climb alongside origination volume.
> _“There's something important to say about leadership when it comes to a company restructure. If anyone can pull this transition off, I actually think that Dorsey stands a good chance...I'm upgrading Block to a Buy based on this change and the pivot in corporate structure.”_
DOWNGRADES
*
SANDISK (SNDK [https://seekingalpha.com/symbol/SNDK]): DOWNGRADE TO HOLD BY FUTURE STACK INVESTMENT [https://seekingalpha.com/article/4901911-sandisk-better-business-but-harder-stock-to-chase-rating-downgrade]. The analyst acknowledges Sandisk’s successful transformation into a structural AI storage leader with 78.4% gross margins and $41.6 billion in remaining performance obligations, but believes current valuations reflect aggressive assumptions with earnings pulled forward.
> _“Overall, the structural story is strong but the stock is becoming harder to own through the entire cycle. That is why I remain constructive on the business while cautious on the future path and assign it a 'hold' rating right now.”_
*
ALPHABET INC. (GOOGL [https://seekingalpha.com/symbol/GOOGL]): DOWNGRADE TO HOLD BY JR RESEARCH [https://seekingalpha.com/article/4902209-alphabet-please-dont-push-this-ai-rally-over-the-cliff-downgrade]. While Alphabet has silenced AI skeptics with over 160% total return and is approaching a $5 trillion market cap, the analyst notes the stock now trades at a steep 32x forward P/E premium that leaves little room for execution missteps.
> _“Momentum is definitely on the side of GOOGL, and I will continue to ride this massive winner...Yet, we can also take it from GOOGL’s print that the stock has never needed a bull trap reversal to turn down quickly into a deeper pullback...While I continue to hold steadfastly to a core position in GOOGL, I will be highly cautious in trying to add to the momentum spike right now.”_
MORE ON MARKETS
* (More) Roses Amid Garbage And Trap Doors [https://seekingalpha.com/article/4902512-more-roses-amid-garbage-trap-doors]
* AI-Powered Earnings Send S&P 500 To New Record Highs [https://seekingalpha.com/article/4902503-ai-powered-earnings-send-sp500-record-highs]
* President Trump Is Fulfilling An Important Campaign Promise [https://seekingalpha.com/article/4902491-president-trump-is-fulfilling-an-important-campaign-promise]
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* S&P 500 to 8,000 this year? Nearly 50% of prediction market traders think so [https://seekingalpha.com/news/4590631-s-and-p-500-to-8000-this-year-nearly-50-percent-of-prediction-market-traders-think-so]
- Asset Manager Sells 1.2 Million Bond ETF Shares, According to Latest SEC Filing
May 11, 2026
On May 11, 2026, Bailard, Inc. filed with the SEC to report the sale of 1,218,026 shares of iShares iBonds Dec 2026 Term Treasury ETF(NASDAQ:IBTG), an estimated $27.89 million transaction based on the quarterly average price.
What happened
According to a SEC filing dated May 11, 2026, Bailard, Inc. sold 1,218,026 shares of iShares iBonds Dec 2026 Term Treasury ETF in the first quarter. The estimated transaction value was $27.89 million, based on the average share price over the period. The quarter-end position value declined by $27.80 million, reflecting both trading activity and market price movements.
What else to know
The fund’s direction was to reduce IBTG, leaving a post-trade stake equal to 0.85% of 13F reportable AUM.
Top five holdings after the filing:
AAPL: $208.45 million (4.8% of AUM) NVDA: $157.04 million (3.6% of AUM) MSFT: $155.85 million (3.6% of AUM) GOOGL: $154.92 million (3.6% of AUM) SPY: $131.03 million (3.0% of AUM)
As of May 8, 2026, IBTG shares were priced at $22.87, up 4.1% over the past year, but underperformed the S&P 500 by 26.5 percentage points.
IBTG’s annualized dividend yield was 4.0% as of May 11, 2026.
IBTG was priced at $22.87, 0.4% below its 52-week high as of May 11, 2026.
ETF overview
Metric Value AUM $2.287 Billion Dividend Yield 3.98% Price (as of market close May 8, 2026) $22.87 1-Year Total Return 4.14%
ETF snapshot
Investment strategy focuses on tracking the performance of a portfolio of U.S. Treasury bonds maturing in December 2026, providing a defined maturity date and targeted exposure to government securities. The fund's underlying holdings consist exclusively of U.S. Treasury securities with maturities aligned to the fund's termination date, resulting in a high-quality, low-credit-risk portfolio. Operates as an exchange-traded fund with a transparent structure and a fixed maturity, offering investors a predictable income stream and principal return at maturity, subject to interest rate risk and market fluctuations.
The iShares iBonds Dec 2026 Term Treasury ETF offers institutional and individual investors targeted exposure to U.S. Treasury bonds with a specified maturity date. The fund's defined-term structure provides a blend of income generation and capital preservation, appealing to those seeking predictable cash flows and minimal credit risk. Its competitive advantage lies in its transparent portfolio, low expense structure, and alignment with liability-driven investment strategies.
What this transaction means for investors
Bailard, Inc., a California-based asset management firm, recently disclosed the sale of approximately 1.2 million shares of The iShares iBonds Dec 2026 Term Treasury ETF (IBTG), valued at around $27.9 million during the first quarter (the three months ending on March 31, 2026). Here are some key takeaways for investors.
Story Continues
First, IBTG is a bond ETF. Specifically, the fund holds U.S. Treasury bonds that mature no later than the end of December 2026. As a result, this fund behaves somewhat differently from many bond ETFs.
Since this fund is designed to provide one component of a bond ladder for investors, all of its holdings will mature into cash by the end of 2026. As the bonds mature, the proceeds will be reinvested into cash and cash equivalents. Once all bonds have matured to cash, the fund will wind up, distributing all cash proceeds to investors.
Therefore, as the fund increasingly converts its holdings to cash and cash equivalents, this fund will more closely resemble a short-term money market fund, with its yield tracking short-term interest rates.
In summary, this fund is best suited to investors with a very short time horizon of less than one year, who may be seeking a fund with extremely low risk and yields that approximate short-term money market rates.
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Jake Lerch has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Asset Manager Sells 1.2 Million Bond ETF Shares, According to Latest SEC Filing was originally published by The Motley Fool
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- Top Midday Stories: Moderna Working on Hantavirus Vaccine, Shares Rise; Blackstone, Halliburton to Invest Combined $1 Billion in VoltaGrid
May 11, 2026
The three major US stock indexes were up slightly in late-morning trading Monday after President Don
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- Microsoft, Google, xAI security test details deleted from US government website
May 11, 2026 · reuters.com
The U.S. Commerce Department removed details from its website about its agreement with Google, xAI and Microsoft to test their artificial intelligence models for security vulnerabilities, according to a Reuters review of the agency's site.
- Alphabet Is on the Brink of Beating NVIDIA in Market Value: ETFs to Buy
May 11, 2026 · zacks.com
GOOGL briefly surpasses NVIDIA in market value following strong earnings and AI momentum, boosting ETFs with significant Alphabet exposure.
- Microsoft slips as investor questions long term AI risks
May 11, 2026
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT) shares slipped Friday after reports surfaced that major hedge fund TCI had sharply reduced its position in the tech giant, citing growing concerns about how artificial intelligence could reshape some of Microsoft's core businesses.
Warning! GuruFocus has detected 1 Warning Sign with MSFT. Is MSFT fairly valued? Test your thesis with our free DCF calculator.
According to the Financial Times, TCI, the hedge fund led by billionaire investor Sir Christopher Hohn, sold off nearly all of its roughly $8 billion Microsoft stake over the past few months. Microsoft reportedly made up about 10% of the fund's portfolio at the end of 2025, but that exposure had fallen to less than 1% by the end of March.
What makes the move stand out is the reasoning behind it. TCI reportedly believes rapid advances in AI could create long term pressure on Microsoft's dominance in productivity software, particularly Office, as new AI driven workflows and competing platforms begin changing how people work. The fund also reportedly flagged potential risks around Azure, Microsoft's cloud business, despite its current strength in enterprise AI infrastructure.
At the same time, TCI appears to be shifting more aggressively toward Alphabet (NASDAQ:GOOG) instead. The fund reportedly increased its Google stake to 5% of its portfolio, making it its largest technology holding.
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