Displaying items by tag: technology

Technology and Communication Services stocks continue to dominate markets in 2025, gaining 23% and 25% respectively—well above the S&P 500’s 15% return. Together, these sectors now account for nearly 45% of the S&P 500’s market cap, with Broadcom, NVIDIA, and Alphabet leading gains among the “Magnificent Seven.” 

Despite volatility earlier in the year due to competitive AI platforms like DeepSeek, resilient consumer demand and strong corporate profits have kept indexes at record highs. Analysts from U.S. Bank Asset Management Group note that AI and cloud computing remain major growth drivers, even as investors scrutinize valuations and capital expenditures. 

While elevated prices could leave tech stocks vulnerable to earnings slowdowns, experts see continued upside as innovation fuels productivity and structural growth. 

Finsum: Technology remains the market’s core engine, volatile yet essential for long-term investment performance.

The Vanguard Information Technology ETF (VGT) offers investors broad exposure to leading artificial intelligence (AI) companies at a very low cost, with an expense ratio of just 0.09%. While not an AI-specific fund, it tracks the information technology sector, which includes many of the world’s biggest AI players such as Nvidia, Microsoft, Apple, and Broadcom. 

About two-thirds of the fund is concentrated in semiconductors and software, meaning its performance is closely tied to the success of a few dominant firms. Compared with AI-focused ETFs like Global X AIQ, which charges 0.68%, VGT’s low fee structure can translate into thousands of dollars in added returns over time. 

However, its heavy concentration — nearly 45% in Nvidia, Microsoft, and Apple — makes it vulnerable to downturns in those key stocks. Overall, VGT provides a simple, low-cost way for investors to benefit from the AI boom without the challenge of picking individual winners.

Finsum: AI makes up a high percentage of GDP growth and this index fund could take advantage of this growing sector. 

Farther has launched an AI-powered Investment Proposal tool, designed to help advisors generate customized client proposals in under 10 minutes. Built entirely in-house, the tool consolidates tasks that once required multiple platforms into a single secure system, ensuring both efficiency and compliance. 

It analyzes a prospect’s existing portfolio, compares it against Farther’s investment models, and produces tailored recommendations that advisors can further refine. The goal is to streamline onboarding while delivering more personalized and client-friendly proposals, helping prospects better understand their options. 

Advisors already using the tool say it allows them to focus more on strategy and client conversations, making their pitches more effective. 

Finsum: AI continues to modernize wealth management by blending automation with human expertise.

PayPal announced a new service called “Pay with Crypto,” which will enable businesses to accept over 100 types of cryptocurrencies, including bitcoin and ethereum. The system allows users to pay with popular crypto wallets like Coinbase and MetaMask, with all payments instantly converted into fiat or PayPal’s U.S.-dollar-backed stablecoin, PYUSD. 

Aimed at streamlining cross-border transactions, the service promises lower fees, with a promotional 0.99% transaction rate through July 2026—well below typical credit card processing costs. 

CEO Alex Chriss highlighted that merchants can receive dollars within seconds, bypassing the volatility and technical challenges typically associated with crypto payments. Businesses can begin opting into a beta rollout in the coming weeks, with broader availability expected later this year. 

Finsum: The launch coincides with a major policy shift as the GENIUS Act, the first U.S. crypto legislation, was recently signed into law, solidifying regulatory support for stablecoins and digital assets.

Ruthenium, a rare platinum group metal, has nearly doubled in price over the past year to $800 an ounce, outperforming gold and silver thanks to surging demand from artificial intelligence applications. The metal’s unique hardness and conductivity make it ideal for hard disk drives used in data centers powering AI, where it enables high-density storage through ultrathin coatings. 

Unlike widely traded metals, ruthenium is sourced only as a byproduct of platinum mining, with global output limited to just 30 tons annually—a figure expected to decline further due to underinvestment. Analysts predict a supply deficit next year as demand outpaces dwindling production, intensifying competition for this obscure element. 

Despite being used in tiny quantities, ruthenium’s role in expanding cloud infrastructure is critical, with hard disk sales projected to rise 16% in 2025. 

Finsum: Unless alternative technologies emerge, ruthenium’s strategic value and price are likely to climb even higher.