Vanguard AI-heavy ETFs resilient after DeepSeek drama, remain good picks for investors

From Nasdaq: 2025-02-01 04:47:00

The stock market’s rise is fueled by heavy investment in Artificial Intelligence (AI) by tech giants. Chinese company DeepSeek disrupts the market with its cost-effective R1 model, outperforming competitors. Vanguard ETFs with significant AI exposure, like VOOG and MGK, are impacted by DeepSeek’s innovation. However, these ETFs quickly rebounded post-initial setback.

Despite initial concerns, Vanguard AI-heavy ETFs remain solid picks. Tech giants in their portfolios adapt well to disruptions, benefiting from lower-cost AI models. Valuations are a concern, but AI’s momentum is expected to drive stock market growth. The ETFs, like VGT, should continue to be strong performers in the long run.

Investors can still consider investing in Vanguard Admiral Funds – Vanguard S&P 500 Growth ETF despite the DeepSeek drama. The Motley Fool’s Stock Advisor team has identified 10 promising stocks, excluding VOOG from the list. Stock Advisor’s track record shows substantial returns, making it a valuable resource for investors seeking growth opportunities.

Important figures like Randi Zuckerberg and John Mackey have ties to prominent tech companies, influencing market perspectives. Keith Speights holds positions in key tech companies, and The Motley Fool recommends various stocks, including Alphabet, Amazon, and Microsoft. The disclosure policy ensures transparency in investment recommendations.



Read more at Nasdaq: Are These AI-Heavy Vanguard ETFs Still Good Picks to Buy in the Wake of the DeepSeek Drama?