Recent Developments In The Tech Sector - 7.18.25

Over the past year, companies focused on AI development and infrastructure have seen a massive increase in stock value, completely changing the dynamics in Wall Street. As the importance and influence of AI and Technology continues to rise, it is important to know what to invest and how to invest when dealing with companies focused on these fields. 

NVIDIA

The current price of a share has risen to 172.26 dollars, which is a 22 percent increase over the past year. With that being said, the market cap has gotten up to over 4 trillion dollars. 

Nvidia designs the chips that power today’s most advanced AI tools, including ChatGPT. Their recent deal to resume selling chips in China boosted shares by 4%, and analysts now believe the company could soon hit 5 trillion dollars in value. Nvidia is volatile but a core holding if you want exposure to AI infrastructure. Consider dollar-cost averaging (DCA) if you're just getting in.

Microsoft

The current price of a share has gotten up to 510.87 dollars. The Q3 growth can be summarized with a 13 percent increase in revenue and a 18 percent increase in its EPS. Microsoft's AI division is made up of Azure Cloud and OpenAI Integration. 

Microsoft’s deep ties to OpenAI (the creators of ChatGPT) are paying off. Cloud services increased 33 percent thanks to AI features being built into Microsoft 365 and Azure. A more stable option than Nvidia. Great for long-term growth portfolios with exposure to both AI and cloud computing.

Google

The current price of a share in Alphabet is 185.03 dollars. However, its P/E Ratio has become a modest 16.9, which shows potential value.

Alphabet is investing heavily in AI—its Gemini model and cloud tools are improving advertising and search. While not surging like Nvidia, it’s a solid play with less downside risk. Alphabet is a strong core holding if you want balanced exposure to both AI innovation and ad-tech revenues.

AI Infrastructure

TSMC (Taiwan Semiconductor) posted a 61 percent profit increase in Q2 due to AI chip demand. Big Tech companies have spent over 300 billion dollars this year on AI development and infrastructure. ETFs like SOXX or AIAI can offer exposure to chipmakers and AI leaders without betting on a single stock.

Some experts warn that the current hype mirrors the dot-com bubble of the early 2000s. Earlier this year, Nvidia lost nearly 600 billion dollars in value in a single day due to China’s launch of DeepSeek-R1, a rival AI model. Focus on fundamentals. Stick with companies that are showing real earnings growth from AI—not just hype.

Investing Strategies

Focusing on stable companies like Nvidia, Microsoft, and Alphabet are best in an uncertain market with evolving developments because they are proven to be profitable. These companies should make up your core AI holdings.

Another helpful tip is to diversify your portfolio with an ETF. The best, most recommended ones to use that are AI themed are companies like Global X Robotics & AI ETF (BOTZ), ARK Innovation ETF (ARKK), and WisdomTree AI & Innovation Fund (WTAI). These give you instant exposure to dozens of companies concerning the recent AI developments. If you can tolerate volatility, consider small-cap AI or quantum computing stocks (like Palantir or IonQ). Allocate a small portion—think 5–10% of your portfolio. AI stocks are volatile, so make sure and review allocations every 3 months to stay on track with your goals.

Another idea to consider is using certain AI programs to help make the market trades for you, such as TrendSpider, Tickeron, and Signal Stack. This will offer aid in signaling when to buy and when to sell based on AI analysis of recent trends. 

Conclusion

Artificial intelligence is no longer uncertain and conspiracy, it’s what some of the most valuable companies in the world rely on now to do every day business deals. While hype can distort prices in the short term, the long-term investment opportunity is very real.

If you're strategic—anchoring in strong performers, diversifying wisely, and staying grounded in data—you can benefit from this historic shift in how the world does business.

Written by Austin Terrell

*The views expressed in this article are for informational and analytical purposes only and do not constitute financial advice. All opinions reflect current market interpretations and are subject to change based on new developments. Quantovate AI is not a registered investment advisor. Please conduct your own research or consult with a financial professional before making investment decisions.