Strategic Investment by QQQ– Can Change the Price Game?

• 50% investment in IT, AI and semiconductor equipment.
• Ongoing Chip Feud can impact Company’s returns.
• Recent Developments in AI may prove beneficial.

Invesco QQQ Trust Series 1 (NASDAQ: QQQ), managed by Invesco Capital Management LLC, is an exchange traded fund (ETF) by Invesco Ltd. The ETF invests in companies spanning across healthcare, IT, communication and real estate. The portfolio of QQQ comprises investments in Microsoft (12.22%), Apple Inc. (12.05%), Amazon(dot)com (6.26%) and several other big conglomerates. 

The investment portfolio is segmented into various sectors that define companies inclination towards tech industry. Its 10% stake is invested in interactive media and services with Alphabet and Meta being the pioneers. 13.30% is from tech hardware, storage and peripherals. About 13.5% comes from semiconductor and related equipments. Biggest chunk comes from software companies, with 17% of holdings.

The ETF has invested in interactive media and services, and with big tech giants developing this stream, QQQ can derive benefit from the same. It also has stakes in software companies like Adobe, which expands the field of cloud technology. 

A huge investment is made in semiconductors and microchips producing companies including Intel, Nvidia and Qualcomm Inc. Amid the ongoing chip war, this segment can see some volatility and may result in losses in the short term. 

However, Nvidia stock (NASDAQ: NVDA) rose by about 20% from the beginning of February. The Company operates in graphic processors and chipsets, which are in demand due to rising AI technology. With launches of various AI tools, chip manufacturing companies will certainly witness bullish trends. 

QQQ Stock Price Analysis

The QQQ stock prices have formed a rising regression channel with current prices facing selling pressure. The volume records high activity from both buyers and sellers. The 20-EMA lies below the price movement to indicate bullish momentum. The QQQ prices may face sellers’ resistance near $320.55.

The RSI moves in the 60-range to show buyers influencing the price action of QQQ. The MACD lines diverged to record buyer histograms being formed in the zone above the zero-histogram mark. The indicators suggest a temporary price reversal and can maintain the high run in the long term. 

Conclusion

The QQQ have invested in various segments that can profit manifolds. The recent developments in all sectors can be beneficial and may reap golden returns in coming term. The holders may look for resistance $320.55 and can trust support near $280.00.

Technical levels

Support levels: $280.00 and $270.10

Resistance levels: $320.55 and $335.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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