Exchange-traded funds (ETFs) have revolutionised the investment landscape, offering traders a versatile tool to access diverse markets. For traders, ETFs present an opportunity to implement sophisticated risk management strategies once reserved for institutional investors. This article explores how ETFs can be effectively used to manage risk in your trading portfolio.

Understanding ETFs and their risk profile

ETFs are investment funds traded on stock exchanges, much like individual stocks. They typically track an index, sector, commodity, or other assets, but can be bought and sold throughout the day like ordinary stock. Unlike mutual funds, ETFs offer greater flexibility and often come with lower fees.

While ETFs can mitigate some risks through diversification, they are not without their own set of risks. Market risk affects all investments, and ETFs are no exception. Tracking error, where an ETF’s performance deviates from its underlying index, is another consideration. Liquidity risk can also be a factor, especially for narrowly focused ETFs.

Diversification: The foundation of risk management

Diversification is a cornerstone of risk management, and ETFs excel at providing instant diversification. By investing in a single ETF, you can gain exposure to hundreds or even thousands of individual securities. This spreads risk across multiple companies, sectors, or even countries.

For maximum diversification, consider broad-market ETFs like those tracking the S&P 500 or total stock market indices. These provide exposure to a wide range of companies across various sectors, reducing the impact of poor performance from any single stock or industry.

Asset allocation with ETFs

Proper asset allocation is crucial for managing risk. ETFs make it easy to build a balanced portfolio across different asset classes. For example, you might use a combination of stock ETFs for growth, bond ETFs for stability, and commodity ETFs for inflation protection.

A simple yet effective allocation for a moderate-risk investor might look like:

– 60% in a total stock market ETF

– 30% in a broad bond market ETF

– 10% in a diversified commodity ETF

This allocation provides a mix of growth potential and stability, which can be easily adjusted based on your risk tolerance and investment goals.

Hedging strategies using ETFs

ETFs offer various hedging strategies to protect your portfolio during market downturns. Inverse ETFs, which move in the opposite direction of their underlying index, can be used to offset potential losses in your long positions. However, use these instruments cautiously, as they’re designed for short-term hedging and can be complex.

For example, consider an investor who holds $10,000 in an S&P 500 index ETF. If they’re concerned about a potential market downturn, they might hedge their position by investing $2,000 in an inverse S&P 500 ETF. If the S&P 500 falls by 5%, their main position would lose $500, but the inverse ETF would gain about $100 (5% of $2,000), reducing the overall loss to $400. This strategy can provide some protection against short-term market volatility.

It’s important to note that leveraged and inverse ETFs can be particularly risky and are generally not suitable for long-term, buy-and-hold investors. Always thoroughly understand these products before incorporating them into your strategy.

Managing sector-specific risks

Overexposure to specific sectors can increase portfolio risk. Sector ETFs allow you to balance your exposure or hedge against sector-specific risks. For instance, if you’re heavily invested in technology stocks, you might consider reducing risk by investing in a healthcare or utilities sector ETF.

Some traders use a sector rotation strategy, shifting investments between different sector ETFs based on the economic cycle. While this can be effective, it requires careful analysis and timely execution.

International diversification with ETFs

Expanding your portfolio internationally can reduce country-specific risks and potentially enhance returns. ETFs make it easy to invest in foreign markets without the complexities of directly owning foreign stocks.

This approach provides exposure to various international markets, potentially reducing risk through geographical diversification. In 2017, when the S&P 500 returned about 21.8%, the MSCI Emerging Markets Index returned 37.3%, demonstrating how international exposure can sometimes outperform domestic markets.

You can use country-specific ETFs to target particular markets or opt for regional ETFs for broader exposure. When investing internationally, be aware of currency risks. Some ETFs hedge currency exposure, while others don’t, affecting your returns as exchange rates fluctuate.

Risk management through regular rebalancing

Regular rebalancing is essential to maintain your target asset allocation and manage risk. As different assets perform differently over time, your portfolio can drift from its original allocation, potentially increasing risk.

With ETFs, rebalancing is straightforward. Simply sell ETFs that have become overweighted in your portfolio and buy those that have become underweighted. The frequency of rebalancing depends on your strategy, but many investors rebalance annually or when their allocation drifts beyond predetermined thresholds.

Practical tips for ETF risk management

To effectively manage risk with ETFs:

1. Research thoroughly: Look at an ETF’s expense ratio, tracking error, and liquidity before investing.

2. Use stop-loss orders: These can limit potential losses by automatically selling if an ETF’s price falls below a specified level.

3. Monitor and adjust: Regularly review your portfolio and adjust your strategy as needed.

4. Stay informed: Keep up with market trends and economic news that might affect your ETF investments.

Remember, while ETFs can be powerful risk management tools, they don’t eliminate risk entirely. Always invest within your risk tolerance and consider consulting with a financial adviser for personalised advice.

For those looking to implement these strategies, platforms like VT Markets offer the ability to trade a wide range of ETFs, providing access to diverse markets and risk management tools.

Conclusion

ETFs offer non-professional traders a range of tools for managing risk. From providing easy diversification to enabling sophisticated hedging strategies, ETFs can help you build a resilient portfolio. By understanding how to effectively use ETFs for risk management, you can navigate market uncertainties with greater confidence. As you apply these strategies, remember that successful investing is a journey of continuous learning and adaptation.

Exchange-traded funds (ETFs) have revolutionised the investment landscape, offering traders a versatile tool to access diverse markets. For traders, ETFs present an opportunity to implement sophisticated risk management strategies once reserved for institutional investors. This article explores how ETFs can be effectively used to manage risk in your trading portfolio.

Understanding ETFs and their risk profile

ETFs are investment funds traded on stock exchanges, much like individual stocks. They typically track an index, sector, commodity, or other assets, but can be bought and sold throughout the day like ordinary stock. Unlike mutual funds, ETFs offer greater flexibility and often come with lower fees.

While ETFs can mitigate some risks through diversification, they are not without their own set of risks. Market risk affects all investments, and ETFs are no exception. Tracking error, where an ETF’s performance deviates from its underlying index, is another consideration. Liquidity risk can also be a factor, especially for narrowly focused ETFs.

Diversification: The foundation of risk management

Diversification is a cornerstone of risk management, and ETFs excel at providing instant diversification. By investing in a single ETF, you can gain exposure to hundreds or even thousands of individual securities. This spreads risk across multiple companies, sectors, or even countries.

For maximum diversification, consider broad-market ETFs like those tracking the S&P 500 or total stock market indices. These provide exposure to a wide range of companies across various sectors, reducing the impact of poor performance from any single stock or industry.

Asset allocation with ETFs

Proper asset allocation is crucial for managing risk. ETFs make it easy to build a balanced portfolio across different asset classes. For example, you might use a combination of stock ETFs for growth, bond ETFs for stability, and commodity ETFs for inflation protection.

A simple yet effective allocation for a moderate-risk investor might look like:

– 60% in a total stock market ETF

– 30% in a broad bond market ETF

– 10% in a diversified commodity ETF

This allocation provides a mix of growth potential and stability, which can be easily adjusted based on your risk tolerance and investment goals.

Hedging strategies using ETFs

ETFs offer various hedging strategies to protect your portfolio during market downturns. Inverse ETFs, which move in the opposite direction of their underlying index, can be used to offset potential losses in your long positions. However, use these instruments cautiously, as they’re designed for short-term hedging and can be complex.

For example, consider an investor who holds $10,000 in an S&P 500 index ETF. If they’re concerned about a potential market downturn, they might hedge their position by investing $2,000 in an inverse S&P 500 ETF. If the S&P 500 falls by 5%, their main position would lose $500, but the inverse ETF would gain about $100 (5% of $2,000), reducing the overall loss to $400. This strategy can provide some protection against short-term market volatility.

It’s important to note that leveraged and inverse ETFs can be particularly risky and are generally not suitable for long-term, buy-and-hold investors. Always thoroughly understand these products before incorporating them into your strategy.

Managing sector-specific risks

Overexposure to specific sectors can increase portfolio risk. Sector ETFs allow you to balance your exposure or hedge against sector-specific risks. For instance, if you’re heavily invested in technology stocks, you might consider reducing risk by investing in a healthcare or utilities sector ETF.

Some traders use a sector rotation strategy, shifting investments between different sector ETFs based on the economic cycle. While this can be effective, it requires careful analysis and timely execution.

International diversification with ETFs

Expanding your portfolio internationally can reduce country-specific risks and potentially enhance returns. ETFs make it easy to invest in foreign markets without the complexities of directly owning foreign stocks.

This approach provides exposure to various international markets, potentially reducing risk through geographical diversification. In 2017, when the S&P 500 returned about 21.8%, the MSCI Emerging Markets Index returned 37.3%, demonstrating how international exposure can sometimes outperform domestic markets.

You can use country-specific ETFs to target particular markets or opt for regional ETFs for broader exposure. When investing internationally, be aware of currency risks. Some ETFs hedge currency exposure, while others don’t, affecting your returns as exchange rates fluctuate.

Risk management through regular rebalancing

Regular rebalancing is essential to maintain your target asset allocation and manage risk. As different assets perform differently over time, your portfolio can drift from its original allocation, potentially increasing risk.

With ETFs, rebalancing is straightforward. Simply sell ETFs that have become overweighted in your portfolio and buy those that have become underweighted. The frequency of rebalancing depends on your strategy, but many investors rebalance annually or when their allocation drifts beyond predetermined thresholds.

Practical tips for ETF risk management

To effectively manage risk with ETFs:

1. Research thoroughly: Look at an ETF’s expense ratio, tracking error, and liquidity before investing.

2. Use stop-loss orders: These can limit potential losses by automatically selling if an ETF’s price falls below a specified level.

3. Monitor and adjust: Regularly review your portfolio and adjust your strategy as needed.

4. Stay informed: Keep up with market trends and economic news that might affect your ETF investments.

Remember, while ETFs can be powerful risk management tools, they don’t eliminate risk entirely. Always invest within your risk tolerance and consider consulting with a financial adviser for personalised advice.

For those looking to implement these strategies, platforms like VT Markets offer the ability to trade a wide range of ETFs, providing access to diverse markets and risk management tools.

Conclusion

ETFs offer non-professional traders a range of tools for managing risk. From providing easy diversification to enabling sophisticated hedging strategies, ETFs can help you build a resilient portfolio. By understanding how to effectively use ETFs for risk management, you can navigate market uncertainties with greater confidence. As you apply these strategies, remember that successful investing is a journey of continuous learning and adaptation.

Sydney, Australia, 24 July 2024 – VT Markets, an award-winning brokerage, announces the launch of its ‘Be a Trading Athlete’ campaign, an online trading competition hosted on the VT Markets App with a USD 14,000 prize pool. The competition runs from 24^th July to 12^th August 2024 and is open to all global users with a Live Account.

This large-scale global competition follows the success of VT Markets’ previous campaign, FIFA 2022, which saw overwhelming participation. The brokerage anticipates attracting up to 8,000 new users by the end of this season.

The competition is divided into four periods, each focusing on a different sport every five days: –

● Shooting: 24 July– 28 July 2024
● Swimming: 29 July – 2 August 2024
● Track and Field: 3 August – 7 August 2024
● Boxing: 8 August– 12 August 2024

Participants are required to complete tasks and earn tickets during each period, including trading, depositing, and checking-in, with up to 21 tasks per period. The top 20 participants with the most tickets will share the USD 14,000 prize pool at the end of each period.

“We are thrilled to bring this competition to our users worldwide during this spirited sports season”, says Kyzer Ong, App Campaign Manager of VT Markets. “As a growing international brand, we continually seek ways to foster inclusion and uphold our belief that trading can be easy. Our goal is to engage our clients through their shared interest in sports and inspire them to apply their competitive spirit to trading. This competition underscores values of resilience, strategy planning, and adaptability in uncertain times. Additionally, we are excited to introduce our highly anticipated Copy Trading feature in Q3 2024”.

The upcoming Copy Trading feature aims to empower investors on their financial journey by offering portfolio diversification. Traders can automatically replicate the portfolios of seasoned professionals and maintain an active portfolio passively, which is suitable for traders of all financial literacy levels.

To participate in the ‘Be a Trading Athlete’ competition, download the VT Markets App, register for a Live Account, and visit the Promotions Page to opt-in.

About VT Markets

VT Markets is a regulated multi-asset broker with a presence in over 160 countries. To date, it has won numerous international accolades including Best Customer Service and Fastest Growing Broker.

In line with its mission to make trading accessible to all, VT Markets currently offers unfettered access to over 1,000 financial instruments and a seamless trading experience via its award-winning mobile app.

For more information, please visit the official VT Markets website or email us at info@vtmarkets.com. Alternatively, follow VT Markets on Facebook, Instagram, or LinkedIn.

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com.

Or contact

Dandelyn Koh
Global Brand & PR Lead
dandelyn.koh@vtmarkets.com

Brenda Wong
Assistant Manager, Global PR & Comms
brenda.wong@vtmarkets.com

Introduction To Forex Fundamentals

The foreign exchange market, or forex, is the world’s largest financial market. Currencies are traded against each other, with trillions of dollars changing hands daily. Forex offers exciting opportunities for potential profits. However, navigating this complex market requires a solid understanding of forex trading fundamentals.

What are Forex Trading Fundamentals?

Forex trading fundamentals involve analyzing economic, political, and social factors that influence currency exchange rates. These factors can be broadly categorized into three main groups:

• Economic Factors: Economic data releases like GDP, inflation rates, interest rates, employment figures, and trade balances are crucial. A strong economy with low unemployment and rising interest rates can generally strengthen a country’s currency. Conversely, a weak economy with high inflation and falling interest rates can lead to a weaker currency.
• Political Factors: Political stability, government policies, and international relations can impact currency exchange rates. For example, political uncertainty or unrest in a country can weaken its currency. Positive policy changes or strong diplomatic ties can strengthen it.
• Social Factors: Consumer confidence, cultural events, and natural disasters also play a role in forex trading. For example, a decline in consumer confidence can indicate a weakening economy and potentially lead to a weaker currency.

Stay Informed with Forex Fundamental News

Keeping updated with the latest forex fundamental news is crucial for making informed trading decisions. Here are some ways to stay informed:

• Financial News Websites and Publications: Major financial news websites and publications like Reuters, Bloomberg, and CNBC constantly publish forex-related news and analysis.
• Central Bank Websites: Central banks, like the Federal Reserve in the US or the European Central Bank (ECB), publish economic data releases, policy statements, and meeting minutes that can impact forex markets.
• Forex Fundamental Analysis Apps: Several mobile applications and online platforms aggregate forex news, economic data, and analysis from various sources, making it easier to stay informed on the go.

How Fundamental News Affects Currency Markets

Let’s assume you’re considering trading the EUR/USD currency pair. You come across news that the European Central Bank (ECB) is planning to raise interest rates to combat rising inflation in the Eurozone. This news event could potentially strengthen the Euro (EUR) against the US Dollar (USD). Higher interest rates make a currency more attractive to investors. Conversely, if the news reported strong job growth and rising wages in the US, the US Dollar (USD) might appreciate against the Euro (EUR).

Forex Fundamental Analysis Apps

While staying informed with forex news is essential, analyzing the impact of this news on currency markets can be complex. Here are a few forex fundamental analysis apps to help you get started:

• VT Markets: The VT Markets app offers over 1000 trading assets, including forex, commodities, indices, and US shares. It provides the latest financial market news, available in various languages, with 24/5 live-chat support.
• Bloomberg: The Bloomberg app provides access to a wealth of financial news, analysis, and data, including forex-related content.

Remember To Have Risk Management

These forex fundamental analysis apps are educational tools and shouldn’t be solely relied upon for making trading decisions. Forex trading involves inherent risks, and success isn’t guaranteed. Approach the market with caution, manage your risk effectively, and never invest more than you can afford to lose.

Conclusion For Beginners Guide to Forex Fundamentals

Understanding forex trading fundamentals is essential for making informed trading decisions. By analyzing economic, political, and social factors, traders can navigate the complexities of the forex market. Utilizing tools like financial news websites, central bank resources, and analysis apps can enhance your trading strategy and improve your chances of success. Ready to practice? Open a demo account with VT Markets today and start your forex trading journey.

FAQ

Q: How do economic factors affect forex trading?

A: Economic factors like GDP, inflation, and interest rates influence currency values. Strong economies tend to strengthen currencies, while weak economies can weaken them.

Q: Why is political stability important in forex trading?

A: Political stability can lead to a stronger currency, while political unrest or uncertainty can weaken it. Government policies and international relations also play a crucial role.

Q: How can social factors impact forex trading?

A: Social factors such as consumer confidence and cultural events can affect economic conditions and, consequently, currency values. For example, high consumer confidence can indicate a strong economy.

Q: What are some reliable sources for forex fundamental news?

A: Major financial news websites like Reuters, Bloomberg, and CNBC, as well as central bank websites, provide reliable forex news and analysis.

Q: How do forex fundamental analysis apps help traders?

A: These apps aggregate news, data, and analysis, making it easier for traders to stay informed and analyze market trends on the go.

Open a demo account with VT Markets today and start practicing with virtual funds. Gain confidence and refine your strategy with our beginner-friendly tools and resources. Dive into the world of forex trading now!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Explore Different Kind Of CFD Bonds

Dive into the world of CFD bonds and CFD bond apps. Learn about various bond types, their workings, and explore the benefits of using apps for trading.

CFD bonds, or Contract for Difference bonds, are a type of derivative trading where you speculate on the rise or fall in prices of global financial markets like shares, indices, commodities, currencies, and bonds.

Why Trade CFD Bonds?

Trading CFD bonds offers several advantages. You can profit from price movements in either direction, trade on leverage, and diversify your portfolio. However, it’s important to remember that CFD trading carries risks and isn’t suitable for everyone.

CFD bonds allow you to trade on margin, providing greater market exposure than your deposit would otherwise allow. For example, if you wanted to purchase 100 units of a particular bond, instead of paying the full value, you’d only need to pay a small deposit. This is known as ‘leveraging’, and even small market movements can significantly impact your trading capital.

Types of CFD Bonds

1. Government Bonds

Issued by governments, these bond CFDs are relatively low-risk compared to others. Governments are generally less likely to default on their debt than corporations. Examples include US Treasuries, UK Gilts, and Japanese Government Bonds.

2. Corporate Bonds

Issued by companies to raise capital, corporate bond CFDs offer higher potential returns but carry higher risk. This risk is tied to the issuing company’s creditworthiness. For instance, a CFD on Apple is considered less risky than one on a newer, smaller company.

3. High-Yield Bonds (Junk Bonds)

Also known as junk bonds, these offer higher potential returns but come with significantly higher risks. The companies issuing these bonds are more likely to default. While attractive to high-risk investors, due diligence is crucial.

4. Emerging Market Bonds

Issued by governments or companies in developing countries, these bond CFDs offer high returns due to growth potential. However, they also carry risks like political instability and currency fluctuations.

5. Inflation-Linked Bonds

Also known as index-linked bonds, these protect investors from inflation. Their value adjusts based on inflation, ensuring constant purchasing power. CFDs on these bonds can be good for hedging against inflation risk.

CFD Bond Apps

Today, several CFD bond apps allow traders to trade on the go. These apps offer features like:

• Real-time price updates
• Advanced charting tools
• Ability to trade directly from the chart

Some popular CFD bond apps include VT Markets. VT Markets, in particular, provides an intuitive platform that supports seamless trading and analysis.

Before We Leave

CFD bonds offer a unique opportunity to profit from bond market price movements. Whether you’re a seasoned trader or just starting, understanding different CFD bonds and how to trade them is crucial. Ready to start trading? Open a demo account today and practice trading without any money. Remember, practice makes perfect!

FAQ

Q: What are CFD bonds?

A: CFD bonds are derivative instruments allowing you to speculate on bond price movements without owning the bonds.

Q: How do government bond CFDs differ from corporate bond CFDs?

A: Government bond CFDs are considered lower risk compared to corporate bond CFDs, which offer higher returns but carry higher risk.

Q: What are the benefits of trading CFD bonds?

A: Benefits include profiting from price movements in both directions, trading on leverage, and diversifying your portfolio.

Q: Can I trade CFD bonds on mobile apps?

A: Yes, several apps like VT Markets, Plus500, and eToro allow you to trade CFD bonds on the go.

Q: What is leverage in CFD bond trading?

A: Leverage allows you to control larger positions with a smaller deposit, increasing your market exposure.

Q: Are high-yield bonds suitable for all investors?

A: High-yield bonds, or junk bonds, are riskier and generally more suitable for investors with a high-risk appetite.

Q: How can I start trading CFD bonds?

A: Start by opening a demo account to practice trading with virtual funds before moving on to real trading.

Q: Why choose VT Markets for CFD bond trading?

A: VT Markets offers a user-friendly platform, advanced tools, and comprehensive support, making it ideal for both novice and experienced traders.

Ready to start trading with VT Markets? Open a demo FX account today and experience seamless CFD bond trading with top-notch tools and support. Visit VT Markets for more information.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

2 AI stocks that benefited from the boom in AI as much as Nvidia

The biggest names in artificial intelligence (AI) are once again beating quarterly earnings expectations.
There isn’t a hotter investment trend on Wall Street that exemplifies the FOMO trade quite like artificial intelligence (AI).

And the biggest winner was Nvidia.

Previously, we did a market analysis when the stock price of Nvidia skyrocketed to a record $1,224.40, bringing the company to hit a $3.01 trillion market cap milestone.

You can read about it here: Nvidia soars to record highs, eyes top spot by market cap

Nvidia made a move that many investors were eagerly waiting for. The tech giant completed a 10-for-1 stock split, now trading for about $120 a share compared with more than $1200 last week.

Such growth has put Nvidia on track to become the second largest company in the world.

What’s all the hype about stock splits?

When a company announces a stock split, it typically indicates strong performance in earnings and share value. This suggests that Nvidia may continue to perform well. Management is confident that, following the split, the stock has the potential to climb even higher.

But don’t expect this superior pricing power to last much longer.

The reason AI stocks have soared is simple: AI is useful in almost every industry. With more companies making A100 and H100 chips and new competitors joining the AI data center market, powerful GPUs will become less scarce. This means Nvidia might not be able to charge as much for their chips in the near future.

Nvidia may be Wall Street’s hottest AI stock right now, but investors may be better off looking at companies which are not heading for a bubble-bursting event.

Picture: Nvidia trading at 136.26 as seen on the VT Markets app (As of 19 June 2024).

Here are 2 hypergrowth stocks that you should grab now

There are currently only three S&P 500 stocks in the $3 trillion club: Nvidia, Microsoft, and Apple.

Compared to the stocks already in the $3 trillion club, Alphabet trades at the lowest valuation by far at a wide discount when compared to the others. Given its current growth and future prospects, the Alphabet currently looks very undervalued.

Alphabet’s market cap now stands at $2.19 trillion, which is approximately 47.03% lower than Nvidia’s valuation of $3.22 trillion.

Here’s why Alphabet has what it takes to push its market cap above $3 trillion

Picture: Google currently trading between 180.72 to 182.48 as of 24 June on the VT Markets app.

While Nvidia dominates the hardware sire of AI, Google Cloud takes the leading role in AI software. Running AI models takes serious computing power, and many companies either don’t have it or can’t justify spending millions of dollars on a system that may not be used enough to justify its cost. Cloud computing is the answer to this problem, allowing anyone to rent computing space from a cloud computing provider like Google Cloud.

Whether it’s data storage or processing power, Google Cloud has clients covered. With access to the latest generation of Nvidia GPUs for training models, Google Cloud is a top competitor in this space.

Up next on the list: Intel

Picture: Intel trading between 31.14 to 31.47 as of 24 June. Download the VT Markets app now.

Intel has been slower in adopting AI, but it’s starting to stand out from other chip makers by jumping into manufacturing. They’re aiming to become one of the biggest semiconductor manufacturers in the U.S. and Europe, just as the demand for chips is booming.

This might be the perfect time to invest.

Intel is on the verge of a potential comeback. Last year, they announced a shift to a foundry model and plans to build chip plants all over the U.S.

Right now, Taiwan Semiconductor Manufacturing Company (TSMC) dominates the market, making at least 60% of the world’s chips. But with tensions rising between China and Taiwan, tech companies are rethinking their reliance on TSMC.

But not for Intel. They’re seizing this opportunity to dive into the manufacturing game.

However, starting a foundry business incurs significant costs, which is why most companies prefer to outsource manufacturing. As a result, it will take time for Intel to recover its investment.

Interested to add Nvidia, Intel, or Intel to your portfolio? Try CFD Share Trading.

With the VT Markets app, you can do it with just a fraction of the trade value, while also being able to control larger positions. Unlike stocks, which require the full amount of the investment upfront, trading Share CFDs offers you the opportunity to gain access to global markets faster and at a lower cost.

Explore our list of US blue-chip shares here