2024-01-29 20:05:22 ET
Summary
- The Technology Select Sector ETF has appreciated by over 20% since my last bullish publication and now trades at a little over $200.
- This time, my positive forecast on the tech ETF is based on top-holding Microsoft and other software plays likely to benefit from AI moving towards the exploitation or usage phase.
- XLK is undervalued compared to Microsoft and Nvidia, presenting a potential target price of roughly $223.
- This represents a fair target given that volatility risks are associated with the Federal Reserve's interest rate policy.
- There are also Apple-related risks as tech earnings season looms.
Since my last bullish publication on the Technology Select Sector ETF ( XLK ) in October 2023 , it has appreciated by over 20% and now trades at a little over $200. This one comes three months later but in a crucial week, both for monetary policy and tech earnings , two potential volatility-inducing events....
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For further details see:
XLK ETF: A Better Way To Invest In Microsoft But Volatility Comes First