ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Megatrends Channel
  2. Buy Into Semiconductors and Big Tech Via NBDS
Megatrends Channel
Share

Buy Into Semiconductors and Big Tech Via NBDS

James ComtoisNov 04, 2022
2022-11-04

While semiconductors have been hit by slowed consumer spending, the market has benefitted from big tech firms like Google, Microsoft, and Amazon upping their capital expenditures in this sector.

Google parent Alphabet reported its Q2 capital expenditures growing 24% year-over-year to $6.9 billion. Microsoft’s capital spending grew by 19% YoY to $8.7 billion in the quarter that ended June 30. Meanwhile, Amazon incurred capital expenditures of about $60 billion in 2021, of which roughly 40% was made up of technology infrastructure supporting AWS and worldwide stores business.

“Big Tech CapEx is the true leading indicator for AI semiconductor companies,” wrote Beth Kindig for Forbes. “Despite an enormous increase in Big Tech CapEx primarily driven by data centers, this line item does not get the attention it deserves in terms of follow-through to the semiconductor industry.

The Artificial Intelligence chip market is expected to grow from $8 billion in 2020 to $195 billion by the year 2030, according to Allied Market Research. This represents a compound annual growth rate of 37% from 2021 to 2030. A report by Dell’Oro Group estimates that the global data center CapEx will be $377 billion by 2026, suggesting that most of the growth noted by Allied Market Research will occur in the next few years.

“There is an ever-increasing demand for data center capacity, driven by rapidly growing cloud markets, aggressive expansion of hyper scale operator networks, and continued growth of data-rich digital services,” said Synergy Research Group Chief Analyst John Dinsdale.

Investors looking to buy into the growing semiconductor sector and other disruptive markets may want to consider the Neuberger Berman Disrupters ETF (NBDS B). The actively managed NBDS seeks to invest in companies pursuing disruptive growth agendas that the team believes will shape the future and can invest globally across market capitalizations.

Rather than use traditional sector classification, the fund’s managers employ a disciplined process to seek innovative companies consistent with a longer-term investment horizon. The portfolio team uses machine learning, language processing, and cloud computing techniques to construct a targeted portfolio of roughly 30 companies.

NBDS is one of three actively managed ETFs Neuberger Berman launched in April. The ETFs are an extension of the firm’s thematic equity investment capabilities using traditional fundamental equity research along with alternative data capabilities and consideration of material environmental, social, and governance factors.

Joseph Amato, chief investment officer and president of Neuberger Berman, said in a news release that the new ETFs “deliver Neuberger Berman’s thematic equity expertise to a broad investor base.”

For more news, information, and strategy, visit the Megatrends Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X