Tech Sector Lags Communication Services Despite Super Micro, Nvidia Surge
Portfolio Pulse from Surbhi Jain
The tech sector has lagged behind communication services over the past six months, despite significant gains from companies like Super Micro Computer and Nvidia. The SPDR Select Sector Fund – Technology (XLK) gained 17.94%, while the Communication Services Select Sector SPDR Fund ETF (XLC) surged 18.37%. Notable tech performers include Micron Technology, CrowdStrike Holdings, and First Solar. In the communication services sector, Meta Platforms, Netflix, and Alphabet drove the outperformance.
June 26, 2024 | 7:07 pm
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POSITIVE IMPACT
CrowdStrike Holdings, Inc. (CRWD) rose 51.30% to $255.63, contributing to the tech sector's performance.
CrowdStrike's strong performance highlights its contribution to the tech sector, although it wasn't enough to lift the entire sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
First Solar Inc (FSLR) increased 50.68% to $170.39, contributing to the tech sector's performance.
First Solar's strong performance highlights its contribution to the tech sector, although it wasn't enough to lift the entire sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Alphabet Inc. (GOOG) climbed around 30%, closing at $142.72, contributing to the XLC ETF's outperformance.
Alphabet's strong performance was a key factor in the XLC ETF's outperformance, underscoring the strength of the communication services sector.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc. (GOOGL) climbed around 30%, closing at $141.49, contributing to the XLC ETF's outperformance.
Alphabet's strong performance was a key factor in the XLC ETF's outperformance, underscoring the strength of the communication services sector.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Meta Platforms Inc. (META) led the communication services sector with a 44.49% rise to $353.39, holding a 22.74% index weight in XLC.
Meta's strong performance and significant weight in XLC were key drivers of the communication services sector's outperformance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Micron Technology Inc (MU) surged 63.16% to $86.49, contributing to the tech sector's performance.
Micron's strong performance highlights its contribution to the tech sector, although it wasn't enough to lift the entire sector.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Netflix Inc. (NFLX) rose 38.14% to $486.76, contributing significantly to the XLC ETF's performance.
Netflix's strong performance was a significant boost to the XLC ETF, highlighting its role in the communication services sector's outperformance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Nvidia Corp (NVDA) soared 158.22%, with a significant 20.73% weight in the XLK ETF, yet it wasn't enough to lift the entire tech sector.
Nvidia's substantial gain and significant weight in XLK underscore its importance, but the broader tech sector still lagged behind communication services.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Super Micro Computer Inc. (SMCI) rocketed 191.01% to $289.72, significantly contributing to the tech sector's performance.
SMCI's astronomical gain highlights its strong performance, although its small weight in XLK limits its overall impact on the sector.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Communication Services Select Sector SPDR Fund ETF (XLC) surged 18.37% over the past six months, outperforming the tech sector.
XLC's outperformance highlights the strength of the communication services sector, driven by gains in companies like Meta, Netflix, and Alphabet.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The SPDR Select Sector Fund – Technology (XLK) gained 17.94% over the past six months but lagged behind the Communication Services Select Sector SPDR Fund ETF (XLC).
Despite a respectable gain, XLK underperformed compared to XLC, indicating a relative lag in the tech sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100