Investors of all stripes are getting increasingly acquainted with the artificial intelligence (AI) megatrend. Still, many market participants that are new to the theme may not realize the depth found with the related investment thesis.
Nvidia (NVDA) has rightfully captured plenty of investors’ hearts and minds, but there’s much more to the AI investing thesis. Capturing the “more” can be efficiently accomplished with the right exchange traded funds, including the WisdomTree Artificial Intelligence and Innovation Fund (WTAI ).
Among dedicated AI ETFs and those funds with credible leverage to the theme, WTAI is one of the most diverse. None of its 75 holdings exceed an allocation of 3% with Nvidia being the largest stock in the fund. By comparison, Microsoft (MSFT) and Nvidia combine for over 42% of the S&P Select Sector Information Technology Index
AI Survey Highlights WTAI Perks
A recent survey by UBS indicates investors view Nvidia and Microsoft as the leaders in enterprise AI. That’s worth noting because both stocks are held by WTAI. The bank polled technology executives at 130 companies and groups.
“At the GPU level, Nvidia unsurprisingly remains the most preferred commipute platform for both training and inference, with respondents already showing a strong intent to leverage Blackwell even six months ahead of Blackwell products shipping,” according to UBS analysts.
In what could be encouraging for long-term investors considering WTAI, the UBS poll found just 10% of those queried said their organizations are currently deploying AI at scale. A potential takeaway from that data point is a more earnest AI ramp-up could occur next year.
Such a scenario would likely benefit Microsoft and Nvidia, but it could have positive implications for other WTAI holdings, too. Names that popped up in the UBS survey include Amazon (AMZN), ServiceNow (NOW), Snowflake (SNOW), and Adobe (ADBE). WTAI holds all four.
“Microsoft and AWS were the top two cloud infrastructure providers for AI. Google Cloud ranked third,” according to Seeking Alpha. “ServiceNow was the most utilized internal IT vendor for AI use cases and ranked first in terms of external sales support for AI.”
Google Cloud is a unit of Alphabet (GOOG), which is the sixth-largest holding in WTAI. Bottom line: with AI adoption and use cases expanding at a rapid rate, the underlying investment thesis will expand beyond Nvidia and that’s a positive. Investors can tap into that trend in efficient fashion with WTAI.
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