Tariff talk and declining risk appetite has recently pressured previously high-flying growth stocks. That includes those with AI exposure. However, as Q4 earnings conference calls confirm, the AI investment thesis is alive and well. That’s because the companies operating in that space are planning significant expenditures in 2025 and going forward.
Some experts believe that’s an encouraging sign and one that’s indicative of artificial intelligence expansion. That’s a broadening that could and arguably should evolve beyond Nvidia (NVDA). That company has been the preeminent way for investors to tap the AI thesis.
Should that expansion occur in earnest ETFs like the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM ) could benefit. Yes, Nvidia is the second-largest holding in those ETFs. But the funds feature rosters that expand deep into the artificial intelligence investment thesis.
AI Investing Is More Than Nvidia
Obviously, investors who bought Nvidia years ago were rewarded handsomely for that call. The same could be true in the future as it pertains to any number of QQQ/QQQM holdings. But stock-picking is difficult. That could highlight the benefits of ETFs like QQQ and QQQM as AI expansion takes hold.
“AI is a genuine revolution – but it’s not a one company revolution. While Nvidia dominates chip design, the infrastructure and applications surrounding AI are experiencing exponential growth,” noted deVere Group CEO Nigel Green. “Cloud computing providers, semiconductor manufacturers, networking firms, cybersecurity specialists, and software developers are all benefiting from AI’s rapid expansion.”
Green’s comments are pertinent to investors currently engaged with or considering QQQ and QQQM. That’s because the ETFs’ rosters feature ample exposure to cloud computing and cybersecurity names as well many chip equities beyond Nvidia.
The point is that AI enabling will be driven by far more than a single company. Likewise, AI adoption has myriad sector- and industry-level implications. Combine both factors, and it’s arguably risky for investors to zero in on a single AI stock. Those risks confirm the utility of QQQ and QQQM.
“It’s increasingly clear that the market won’t be dominated by a single player—it’ll thrive on diversification and innovation across the entire value chain,” added Green.
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