Latest news with #InfiniBand
Yahoo
4 hours ago
- Business
- Yahoo
Billionaires Are Buying an AI Index Fund That Could Turn $400 per Month Into $384,000
Several hedge fund billionaires bought shares of the Invesco QQQ Trust in the first quarter, an index fund that provides heavy exposure to several AI stocks. The Invesco QQQ Trust returned 14.9% annually over the last two decades, but even more modest gains could turn $400 per month into $384,000. The Invesco QQQ Trust has historically been a volatile investment; it fell more than 20% from a record high four times in the past decade. 10 stocks we like better than Invesco QQQ Trust › Exchange-traded funds (ETFs) are ready-made portfolios that provide exposure to specific sectors or stock market indexes. The Invesco QQQ Trust (NASDAQ: QQQ) is the fifth most popular ETF worldwide as measured by assets under management, and several prominent billionaires added to their positions in the first quarter. Ken Griffin of Citadel Advisors added 2.2 million shares. The ETF is now the third-largest position in the hedge fund excluding options. Israel Englander of Millennium Management added 474,300 shares. The ETF now ranks among the 25 largest positions in the hedge fund excluding options. Steven Cohen of Point72 Asset Management added 7,950 shares. The ETF remains a relatively small position in the hedge fund. Citadel is the most profitable hedge fund as measured by net gains since inception, while Millennium ranks third and Point72 ranks twelfth. That means all three fund managers are good sources of inspiration, and individual investors should consider following their lead here. The Invesco QQQ Trust could turn $400 per month into $384,000 in 20 years. Read on to learn more. The Nasdaq-100 measures the performance of 100 of the largest non-financial companies on the Nasdaq Stock Exchange. The index is rebalanced quarterly and reconstituted annually in December. For instance, three companies were added to the index at the end of 2024: Axon Enterprise, Palantir Technologies, and Strategy. The Invesco QQQ Trust tracks the Nasdaq-100. These are the 10 largest positions in the index fund, by weight: Microsoft: 8.8% Nvidia: 8.8% Apple: 7.3% Amazon: 5.5% Alphabet: 4.8% Broadcom: 4.8% Meta Platforms: 3.7% Netflix: 3.1% Tesla: 2.9% Costco Wholesale: 2.6% Importantly, several companies in that list are likely to benefit from demand for artificial intelligence (AI) in the coming years. Microsoft, Amazon, and Alphabet are the three largest public clouds. Apple is building a more sophisticated version of its conversational assistant Siri that will use AI to understand personal context and take actions across other apps. Meanwhile, Nvidia is the leading supplier of data center GPUs, chips used to speed up AI tasks. It is also the leader in InfiniBand networking, the preferred connectivity technology for backend AI networks. Broadcom is the leader in custom AI and networking silicon. Meta is using AI to make its social media properties more engaging and to help advertisers create media content for campaigns. And Tesla is building autonomous cars and robots. Excluding dividends, the Invesco QQQ Trust advanced 1,290% during the last two decades, compounding at 14% annually. But inclusive of dividends, the index fund returned a total of 1,510%, which is equivalent to 14.9% annually. Importantly, while history suggests gains of 14.9% annually are possible in the next 20 years, I will assume more modest returns of 12.9% annually to introduce a margin of safety. At that pace, $400 invested monthly would be worth $87,900 in one decade and $384,000 in two decades. Some investors may wish to save more or less than $400 per month. The following chart details how different monthly contribution amounts will grow over time, assuming an annual return of 12.9%. Holding Period $100 Per Month $200 Per Month $600 Per Month 10 years $21,900 $43,900 $131,900 20 years $96,000 $192,000 $576,000 Data source: returns were determined using the compound interest calculator.. Investors need two more pieces of information. First, the Invesco QQQ Trust has been very volatile in the past because it is heavily weighted toward the technology sector, creating concentration risk. Consequently, the index fund fell more than 20% from its record high four times in the past decade. Similar volatility is likely in the future. Second, the Invesco QQQ Trust has a modest expense ratio of 0.20%, so shareholders will pay $2 annually on every $1,000 invested in the index fund. Comparatively, the average expense ratio of U.S. index funds and mutual funds was 0.34% in 2024. Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Axon Enterprise, Nvidia, Palantir Technologies, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Axon Enterprise, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaires Are Buying an AI Index Fund That Could Turn $400 per Month Into $384,000 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
AI Investments Shield Ethernet Data Center Switch Market from Tariff Disruptions, Shattering Sales Records, According to Dell'Oro Group
Celestica and NVIDIA Rise as Top Beneficiaries, Cementing their Dominance among the Elite Top 5 Vendors in the Market REDWOOD CITY, Calif., June 5, 2025 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, Ethernet Data Center Switch sales surged over 40 percent in the first quarter of 2025, marking the strongest growth since we began separately tracking the market in 2013 and breaking a new all-time high. Celestica and NVIDIA captured the lion's share of the gains, each expanding their revenue share by more than five percentage points. "AI investments continue to accelerate at unprecedented level, even amid tariff disruptions—propelling a surge in spending on the compute as well on the networking infrastructure that goes with it," said Sameh Boujelbene, Vice President at Dell'Oro Group. "Just two years ago, over 80 percent of AI clusters ran on InfiniBand, but Ethernet is striking back rapidly—gaining significant ground as reflected by the astonishing surge in Ethernet Data Center Switch sales during the quarter." Additional highlights from the 1Q 2025 Ethernet Switch–Data Center Report: Arista continues to lead the market for the fourth consecutive quarter. Celestica and NVIDIA are now among the top five vendors in the market. 800 Gbps switch sales eclipsed $1 B during the quarter. About the ReportThe Dell'Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers' revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1, 10, 25, 40, 50, 100, 200, 400, 800, ≥1600 Gbps); revenue split by market segments as well as regional breakouts. To purchase these reports, please contact us by email at dgsales@ About Dell'Oro GroupDell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit View original content to download multimedia: SOURCE Dell'Oro Group Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
04-06-2025
- Business
- Time of India
Broadcom ships latest networking chip to speed AI
HighlightsBroadcom has launched its latest networking chip, the Tomahawk 6, which offers double the performance of its predecessor and enhanced traffic control features. The Tomahawk 6 is designed to support the construction of large-scale data centers for artificial intelligence applications, potentially accommodating over 100,000 graphics processing units (GPUs). This new chip utilizes a chiplet design, which has become popular among chip manufacturers, and is being produced using Taiwan Semiconductor Manufacturing Company's advanced three nanometer process. Broadcom has begun to ship its latest networking chip that aims to speed AI, the company said on Tuesday. The chip, called the Tomahawk 6 , boasts double the performance compared with the prior version and other traffic control features that make the networking chip significantly more efficient, Ram Velaga, a Broadcom senior vice president, told Reuters in a Monday interview. The speed boost means that fewer networking switches are needed to perform the same task, Velaga said. Broadcom's networking chips have gained increased importance because of AI. When constructing the necessary data centers for AI applications, infrastructure builders must string together hundreds or thousands of chips. Building large-scale clusters of networked chips requires specialized networking gear and chips, of which the Tomahawk series of processors is one such component. With the Tomahawk 6, Broadcom's engineers have boosted its speed and capabilities to the point where it can be used to construct the larger data centers that are necessary for AI, which can be over 100,000 graphics processors (GPUs) strung together, Velaga said. "In a couple of years, you will start to see a million GPUs housed inside a physical building," he said. Broadcom's networking chips use the Ethernet networking protocol, which has been a networking standard for decades. Nvidia produces hardware that uses a rival tech called InfiniBand and several products based on Ethernet. "All of these networks can be very simply done on Ethernet, you don't need esoteric technologies," Velaga said. The Tomahawk 6 is the first product in that line that will use several chips combined into a single package, a tech known as chiplets that is widely adopted by other chip designers such as Advanced Micro Devices. Adding chiplets roughly doubled the amount of silicon area used in the design, Velaga said. Broadcom is producing the Tomahawk switch on Taiwan Semiconductor Manufacturing Co's three nanometer process.
Time of India
04-06-2025
- Business
- Time of India
Broadcom ships latest networking chip to speed AI
By Max A. Cherney SAN FRANCISCO: Broadcom has begun to ship its latest networking chip that aims to speed AI, the company said on Tuesday. The chip, called the Tomahawk 6 , boasts double the performance compared with the prior version and other traffic control features that make the networking chip significantly more efficient, Ram Velaga, a Broadcom senior vice president, told Reuters in a Monday interview. The speed boost means that fewer networking switches are needed to perform the same task, Velaga said. Broadcom's networking chips have gained increased importance because of AI. When constructing the necessary data centers for AI applications, infrastructure builders must string together hundreds or thousands of chips. Building large-scale clusters of networked chips requires specialized networking gear and chips, of which the Tomahawk series of processors is one such component. With the Tomahawk 6, Broadcom's engineers have boosted its speed and capabilities to the point where it can be used to construct the larger data centers that are necessary for AI, which can be over 100,000 graphics processors (GPUs) strung together, Velaga said. "In a couple of years, you will start to see a million GPUs housed inside a physical building," he said. Broadcom's networking chips use the Ethernet networking protocol, which has been a networking standard for decades. Nvidia produces hardware that uses a rival tech called InfiniBand and several products based on Ethernet. "All of these networks can be very simply done on Ethernet, you don't need esoteric technologies," Velaga said. The Tomahawk 6 is the first product in that line that will use several chips combined into a single package, a tech known as chiplets that is widely adopted by other chip designers such as Advanced Micro Devices. Adding chiplets roughly doubled the amount of silicon area used in the design, Velaga said. Broadcom is producing the Tomahawk switch on Taiwan Semiconductor Manufacturing Co's three nanometer process.
Time of India
03-06-2025
- Business
- Time of India
Cornelis Networks releases tech to speed up AI datacenter connections
By Stephen Nellis SAN FRANCISCO: Cornelis Networks on Tuesday released a suite of networking hardware and software aimed at linking together up to half a million artificial intelligence chips. Cornelis, which was spun out of Intel in 2020 and is still backed by the chipmaker's venture capital fund, is targeting a problem that has bedeviled AI datacenters for much of the past decade: AI computing chips are very fast, but when many of those chips are strung together to work on big computing problems, the network links between the chips are not fast enough to keep the chips supplied with data. Nvidia took aim at that problem with its $6.9 billion purchase in 2020 of networking chip firm Mellanox, which made networking gear with a network protocol called InfiniBand, which was created in the 1990s specifically for supercomputers. Networking chip giants such as Broadcom and Cisco Systems are working to solve the same set of technical issues with Ethernet technology, which has connected most of the internet since the 1980s and is an open technology standard. The Cornelis "CN5000" networking chips use a new network technology created by Cornelis called OmniPath. The chips will ship to initial customers such as the U.S. Department of Energy in the third quarter of this year, Cornelis CEO Lisa Spelman told Reuters on May 30. Although Cornelis has backing from Intel, its chips are designed to work with AI computing chips from Nvidia, Advanced Micro Devices or any other maker using open-source software, Spelman said. She said that the next version of Cornelis chips in 2026 will also be compatible with Ethernet networks, aiming to alleviate any customer concerns that buying Cornelis chips would leave a data center locked into its technology. "There's 45-year-old architecture and a 25-year-old architecture working to solve these problems," Spelman said. "We like to offer a new way and a new path for customers that delivers you both the (computing chip) performance and excellent economic performance as well."
