Regardless of experience level, many investors know at least a little something about artificial intelligence equities. But in most cases, their knowledge bases are confined to the Magnificent Seven and a handful of other large-cap names.
That’s understandable, because the AI investing conversation and related news flow has long been dominated by the Magnificent Seven, Broadcom (AVGO), and a scant number of other stocks. Said another way, there other AI investment opportunities out there that may not yet be generating the attention they deserve.
Of course, stock-picking along the lines of underappreciated or under-owned names can be difficult, regardless of industry. And that can highlight advantages with ETFs, such as the Invesco NASDAQ Next Gen 100 ETF (QQQJ ). This fund follows the NASDAQ Next Generation 100 Index. That is the proving ground of sorts for admittance to the Nasdaq-100 Index (NDX).
QQQJ Has Credible Artificial Intelligence DNA
QQQJ’s index is meaningful in the AI investing conversation. That’s because, like its family member NDX, the gauge is home to multiple AI equities. Those stocks are less ballyhooed than NDX’s artificial intelligence fare. But QQQJ offers investors legitimate AI exposure. And that’s particularly so on the overlooked/underappreciated front.
In a recent interview with Business Insider, Que Nguyen, chief investment officer at Research Affiliates, mentioned Seagate Technologies (STX) and Western Digital (WDC) as two stocks that deserve more AI-related praise. That perspective is pertinent to investors considering QQQJ. That’s because those two names combine for almost 4% of the ETF’s roster. And both are among the fund’s top 10 holdings. Seagate is a play on the intersection of artificial intelligence with cloud and edge computing.
“The company’s nearline hard drives remain the backbone of hyperscale cloud storage, with build-to-order (BTO) contracts ensuring visibility well into mid-2026,” noted Zacks Investment Research. “This contractual model not only secures revenue streams but also provides cloud service providers (CSPs) with predictable supply [assurance. That’s] an increasingly critical factor as global data center capacity is expected to more than double by 2029 on a gigawatt basis.”
With an enviable perch in the critical AI storage space, Western Digital arguably deserves more AI credit. That thesis is fortified by the company’s agentic AI inroads. And that’s pertinent because agentic AI is widely considered the next AI growth outlet.
“The rapid growth of AI is accelerating the company’s platforms business, which delivers high-density systems that maximize drive performance and capacity. This business is gaining traction with infrastructure [providers. And it] is well-positioned to serve the increasing number of native AI companies lacking dedicated storage teams,” noted Zacks.
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