A familiar refrain: It takes money to make money. That’s particularly true at the corporate level, where research and development is the lifeblood of thriving enterprises. Nowhere is that more true in the technology sector. The notion of spending to increase market share and profits is amplified in the AI space.
Some experts believe that artificial intelligence spending could reach all-time highs this year. At the very least, top levels seen over the past few years indicate there are important implications for ETFs like the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF QQQM)
QQQ and QQQM, which have the same lineups, gained an average of 26.65% last year. Much of that upside accrued on the back of shares of companies with significant AI exposure. Investors’ attention is turning to artificial intelligence adoption. So some QQQ/QQQM member firms are expected to spend big in 2025 to meet the ever-evolving demands of AI adopters.
Big Artificial Intelligence Spenders Reside in QQQ
Regarding big AI spenders Microsoft (MSFT), one of the largest holdings in QQQ and QQQM and a backer of ChatGPT parent Open AI, said it will spend $80 billion on data centers in the coming years. About half that sum is forecast to be spent in the U.S. That signals the tech giant’s commitment to this country.
“The country has a unique opportunity to pursue this [vision. It can also] build on the foundational ideas set for AI policy during President Trump’s first term. Achieving this vision will require a partnership that unites leaders from many [sectors. Those include] government, the private sector, and the country’s educational and non-profit institutions. At Microsoft, we are excited to take part in this journey,” wrote Microsoft Vice President Brad Smith in a Friday blog post.
'The Essential Foundation of AI Innovation'
Smith acknowledged that partnerships and investments “serve as the essential foundation of AI innovation and use.” Yes, that’s a comment from just one executive at one company. From that it can be inferred other QQQ/QQQM hold similar lines of thinking. It can also be inferred they are willing to spend to accomplish their AI objectives. The point is the future is bright for artificial intelligence. But it’s going to require significant capital to get there.
“[Artificial intelligence], like all new technologies, will disrupt the economy and displace some jobs. But as we’ve worked on skilling initiatives during the past few years, our confidence has grown that AI will create new opportunities that will outweigh many of the challenges ahead,” concluded Smith. “If used well, AI will help lower the barriers to entry for many professions, replace rote tasks, and create a foundation for human creativity that builds on AI tools. [Artificial intelligence] will create new economic opportunities, allowing entrepreneurs to start new businesses and create new jobs.”
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