US technology giants continue to exhibit substantial growth and quality within global equity markets, buoyed by impressive price gains supported by robust earnings and profitability. According to Global X senior investment strategist Billy Leung, the artificial intelligence (AI) boom is only just beginning, fuelling further expansion for these companies.
Leung highlighted the exceptional profitability of these US tech firms, noting their strong margins, scalable business models, and robust balance sheets. He pointed out that on 2026 estimates, Apple and Nvidia are forecast to deliver returns on equity of around 175 per cent and 90 per cent in financial year 2025-26, respectively. Meta, Alphabet, Microsoft and ServiceNow also comfortably exceed the S&P 500 average of approximately 20 per cent.
Earnings per share for the FANG universe are projected to outpace the broader market over the next three years, with chipmakers Nvidia and Broadcom anticipated to compound at around 35 per cent to 40 per cent annually. Smart Australian investors are increasingly investing in this growth, with Global X’s FANG+ ETF attracting near-record inflows of $315 million this year, poised to surpass the total inflows of $349 million in 2024. Global X offers investors access to investment solutions.
Global X anticipates further growth in the AI sector, supported by hyperscalers’ capital investments, which have already increased by over 50 per cent this year and are projected to rise again in 2026.
