Back to top

Image: Bigstock

ETFs to Play on AI's Growing Momentum

Read MoreHide Full Article

Increasing investments in the AI and Tech market were a dominant theme on Wall Street last year, and the momentum shows no signs of slowing in 2025. This sustained momentum presents a compelling opportunity for investors, as ongoing initiatives and innovation continue to drive growth in the U.S. AI and technology market.

Nvidia (NVDA - Free Report) shares surged on Wednesday, briefly pushing its market cap above $4 trillion for the first time. This underscored growing investor and market enthusiasm surrounding the AI sector. Nvidia has now become the world’s most valuable company, overtaking Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) , both of which previously hit the $3 trillion mark, hinting at the outsized influence of tech and tech-related firms on the broader market.

This milestone not only highlights the accelerating momentum behind the AI and tech rally but also reflects the immense significance of the AI chipmaker and the technology sector to the broader stock market.

According to Reuters, Nvidia’s rally further highlights the rising dominance of the technology sector, which has become the largest component of the S&P 500. In fact, the tech sector’s share of the index has grown to nearly one-third of total market value.

Massive AI Investments to Propel U.S. Toward Tech Dominance

With the global AI market projected to surpass $1 trillion by 2031, the field is emerging as an increasingly attractive investment opportunity. According to Statista, the U.S. AI market is expected to witness a CAGR of 26.95% from 2025 to 2031, reaching a valuation of $309.7 billion by 2031, cementing its position as the largest AI market globally.

In addition to the optimistic growth forecasts, President Trump has repeatedly emphasized his ambition to make the United States the global leader in AI. This stance further reinforces the country’s position as an ideal destination for AI-related investments.

Experts remain bullish on the AI infrastructure trade, as global investors ramp up their commitments to the U.S. AI market. SoftBank’s Masayoshi Son’s proposal for the $1 trillion Arizona hub and President Trump’s earlier announcement of the $500 billion ‘Stargate’ initiative highlights the growing momentum behind AI investments in the U.S. market.

ETFs to Explore

Below, we highlight funds that investors may consider to capitalize on the AI momentum.

AI ETFs

Increasing exposure to AI-focused funds presents a compelling opportunity for investors, driven by the growing momentum behind the AI and Tech market in the United States. These developments, along with robust market forecasts, make AI and tech-related ETFs a strategic addition to portfolios with long-term investment horizons.

Investors can consider iShares U.S. Technology ETF (IYW - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) and iShares Global Tech ETF (IXN - Free Report) and Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) .

With a one-month average trading volume of about 795,000 shares, AIQ is the most liquid option, ideal for active trading strategies.

IYW has also gathered an asset base of $22.08 billion, the largest among the other options.Regarding annual fees, FTEC is the cheapest option, charging 0.08%, more suitable for long-term investing.

Uranium ETFs

As demand for AI soars and clean energy needs grow, tech giants are turning to nuclear power to fuel energy-intensive data centers to train and operate the large-scale AI models used in generative AI applications.

Data centers are energy-intensive, with AI applications consuming even more energy than traditional computing. As a result, most tech giants are shifting toward renewable energy to meet their growing energy needs and exploring nuclear energy as a power source.

With an increasing focus on nuclear energy and uranium demand set to grow substantially, uranium ETFs are also an appealing strategic portfolio addition for the long term.

Investors can consider Global X Uranium ETF (URA - Free Report) , VanEck Uranium+Nuclear Energy ETF (NLR - Free Report) , Sprott Junior Uranium Miners ETF (URNJ - Free Report) and Themes Uranium & Nuclear ETF (URAN - Free Report) to capitalize on the uranium market's upside potential.

Published in