Some of the world’s largest tech companies are continuing to showcase why the AI growth story is here to stay.
Earlier in October, Google announced it would begin efforts to construct its first artificial intelligence hub in India. With the cost coming in at about $15 billion, Google noted that this hub will represent the company’s largest investment in India to date.
However, Google isn’t the only tech giant looking to build.
Some of the world’s largest tech companies are continuing to showcase why the AI growth story is here to stay.
In October, Google announced it would begin efforts to construct its first artificial intelligence data center hub in India. With the cost coming in at about $15 billion, Google noted that this hub will represent the company’s largest investment in India to date.
However, Google isn’t the only tech giant looking to expand their AI footprints. That same week, Salesforce also announced plans to construct a new AI hub, essentially an incubator for AI companies and talent — this one being domiciled in San Francisco. Coincidentally, Salesforce also estimated that this hub would represent a $15 billion investment.
There’s plenty to take away from these dual headlines. To start, the fact that these major tech companies are willing to further dedicate significant capital to new AI efforts indicates their faith in AI as a product that’s not going away any time soon.
Furthermore, we believe these expansions can work in the favor of artificial intelligence enablers and adopters for multiple reasons. First, we believe these investments will further expand the bandwidth for AI development, innovation, and adoption. Second, competition breeds innovation, and innovation can potentially work in the favor of the companies at the forefront of AI adoption.
ALAI Tackles AI Adoption with a Fundamental Approach
The Alger AI Enablers & Adopters ETF (ALAI ) can help advisors and investors take advantage of some of these themes. ALAI not only provides exposure to Alphabet, it also maintains a distinct focus toward companies that we believe are at the forefront of AI adoption, utilization, and development.
The ETF’s fundamental approach to stock selection includes using proprietary field research to choose companies to invest in. By doing so, ALAI’s portfolio team hopes to focus on companies seeing positive dynamic change.
For Alger, companies undergoing positive dynamic change are doing so either due to “high unit volume growth” or “positive lifecycle change.” “Positive life cycle change” companies are those in a good position to rally from new regulations, innovations, or company leadership. “High unit volume growth” are companies that are experiencing strong market dominance or rapid growth. This combined approach can give ALAI a well-rounded portfolio to tackle different avenues for return opportunities.
For more news, information, and analysis, visit the Artificial Intelligence Content Hub.
Click here for more information on the Alger AI Enablers & Adopters ETF.
Disclosure Information
The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of November 2025. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change. Past performance is not indicative of future performance.
Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Companies involved in, or exposed to, AI-related businesses may have limited product lines, markets, financial resources or personnel as they face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing their consumer base. These companies may be substantially exposed to the market and business risks of other industries or sectors, and may be adversely affected by negative developments impacting those companies, industries or sectors, as well as by loss or impairment of intellectual property rights or misappropriation of their technology. Companies that utilize AI could face reputational harm, competitive harm, and legal liability, and/or an adverse effect on business operations as content, analyses, or recommendations that AI applications produce may be deficient, inaccurate, biased, misleading or incomplete, may lead to errors, and may be used in negligent or criminal ways. AI technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the future growth. AI companies, especially smaller companies, tend to be more volatile than companies that do not rely heavily on technology. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. Investing in companies of small and medium capitalizations involves the risk that such issuers may have limited product lines or financial resources, lack management depth, or have limited liquidity. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Private placements are offerings of a company’s securities not registered with the SEC and not offered to the public, for which limited information may be available. Such investments are generally considered to be illiquid. Foreign securities involve special risks including currency fluctuations, inefficient trading, political and economic instability, and increased volatility. ADRs and GDRs may be subject to international trade, currency, political, regulatory and diplomatic risks. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities.
ETF shares are based on market price rather than net asset value (“NAV”), as a result, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund may also incur brokerage commissions, as well as the cost of the bid/ask spread, when purchase or selling ETF shares. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation and/or redemption process of the Fund. Any of these factors, among others, may lead to the Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market. The Manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. The Fund may effect its creations and redemptions for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind. Brokerage fees and taxes will be higher than if the Fund sold and redeemed shares in-kind. Certain shareholders, including other funds advised by the Manager or an affiliate of the Manager, may from time to time own a substantial amount of the shares of the Fund. Redemptions by large shareholders could have a significant negative impact on the Fund.
Alger pays compensation to VettaFi to sell various strategies to prospective investors.
The following positions represent firm wide assets under management as of August 31, 2025: Alphabet Inc.: 2.55%; Salesforce, Inc.: -0.01%
Before investing, carefully consider a Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for a Fund’s most recent month-end performance data, visit www.alger.com, call (800) 992-3863 (for a mutual fund) or (800) 223-3810 (for an ETF), or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. All underlying series of The Alger ETF Trust listed on NYSE Arca, Inc. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
