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Beyond the Hype: Top ETFs to Buy as AI Shifts Into a Long-Term Growth Phase
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Key Takeaways
GS estimates AI capex hits $527B in 2026, signaling a shift from hype to a capital-intensive growth phase.
Hyperscalers like AMZN, MSFT and GOOGL are driving Phase 2 via data center builds and power, cooling demand.
Rising AI capex and revenue transition are boosting interest in AI ETFs like CHAT, BAI, AIQ and ARTY.
Artificial intelligence (AI) has fundamentally shifted its narrative as an investment tool in recent years. What began as a hot trading trend has matured into a tangible, capital-intensive engine driving global economic transformation, as we move through 2026.
The early, broad-based speculation has given way to a long-term growth phase characterized by unprecedented corporate investment and a strategic rotation within the equity market. As the world’s largest asset manager, BlackRock, asserts in its 2026 outlook, this theme is not nearing exhaustion. Instead, we are witnessing the deepening of a capital cycle in which precision matters more than ever.
This transition of AI from a fleeting trend to a long-term economic pillar puts AI-focused exchange-traded funds (ETFs) directly in the spotlight. For investors seeking to capture returns from what is being called the ‘broadening bull market,’ these diversified funds offer a strategic way to gain exposure to the massive capital expenditures and productivity gains now unfolding.
The $500 Billion Bet
According to recent insights from Goldman Sachs (GS - Free Report) , investment in AI is reaching unprecedented levels, with Wall Street analysts predicting in December 2025 that capital spending by AI-related companies will reach $527 billion in 2026. Impressively, this figure reflects an upward revision from the earlier projection of $465 billion, estimated at the start of the third-quarter earnings season.
This sheer scale of investment in AI is driven by the following key growth drivers:
The Infrastructure Supercycle: We are witnessing a "Phase 2" of the AI trade, where "Hyperscalers" like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Meta Platform (META - Free Report) are aggressively building data centers. This is not just about chips; it includes a massive ecosystem of demand for power generation, cooling systems and specialized networking hardware.
The Transition to Revenue Model: 2026 is viewed as the "transition year." The focus is shifting from pure infrastructure to AI-enabled revenue models. Software and services firms are finally beginning to prove their worth by delivering tangible productivity gains to enterprise clients.
Broadening Adoption: As noted in BlackRock’s 2026 Outlook (cited in a CNBC press release), the AI bull market is "broadening out." While 2025 was dominated by a few "Magnificent" names, 2026 is seeing growth spill over into utilities (to power AI), construction (to build data centers), and specialized semiconductor laggards.
Outlook Beyond 2026
Looking beyond 2026, this combination of under penetrated capex, an expanding set of AI use cases, and deliberate institutional portfolio tilts suggests AI will remain a structural growth theme rather than a one-cycle story.
To this end, it is imperative to mention that predictions from many data sources suggest the global AI market will comfortably surpass the trillion-dollar threshold by 2030, driven by explosive growth in generative AI, cloud computing and infrastructure.
The Compelling Case for AI ETFs
With AI maturing into a long-duration growth story, investors continue to keep their portfolio focused on it. To this end, in mid-December last year, survey data from The Motley Fool indicated that 93% of AI investors intend to remain invested, with 36% planning to increase their allocation this year.
However, individual stock picking in the AI space has become increasingly risky, as ‘sentiment resets’ and elevated valuations have driven volatility in the recent past and may do so again.
Against this backdrop, AI ETFs are seeing a massive influx of investor capital, as they provide a "safety in numbers" approach while ensuring investors don't miss out on the next leg of the supercycle.
Therefore, investors who would like to capture the upside from escalating AI capex, AI revenue adoption and productivity gains over the coming decade may consider the following AI-focused ETFs:
This fund, with assets worth $8.52 billion, offers exposure to 42 global AI and technology equities across all market capitalizations, chosen through bottom-up, research-driven fundamental investing. Its top three holdings include Nvidia (NVDA - Free Report) (8.19%), Broadcom (AVGO - Free Report) (7.45%) and GOOGL (4.67%).
BAI has soared 23.7% over the past year. The fund charges 55 basis points (bps) as fees.
Global X Artificial Intelligence & Technology ETF (AIQ - Free Report)
This fund, with net assets worth $7.82 billion, offers exposure to 86 companies that potentially stand to benefit from the further development and utilization of AI technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data. Its top three holdings include GOOGL (4.47%) and Micron Technology (MU - Free Report) (3.77%).
AIQ has gained 30.9% over the past year. The fund charges 68 bps as fees.
This fund, with net assets worth $2.19 billion, offers exposure to 86 companies at the forefront of AI innovation in areas including generative AI, AI data & infrastructure, AI software and AI services. Its top three holdings include MU (6.38%), Taiwan Semiconductor (TSM - Free Report) (4.99%) and Advanced Micro Devices (AMD - Free Report) (4.55%).
ARTY has gained 30.1% over the past year. The fund charges 47 bps as fees.
Roundhill Generative AI & Technology ETF (CHAT - Free Report)
This fund, with assets under management (AUM) worth $1.03 billion, offers exposure to 49 companies involved in the investment theme of artificial intelligence, generative artificial intelligence and related technologies. Its top three holdings include GOOGL (6.77%), NVDA (6.59%) and MSFT (5.21%).
CHAT has surged 43% over the past year. The fund charges 75 bps as fees.
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Beyond the Hype: Top ETFs to Buy as AI Shifts Into a Long-Term Growth Phase
Key Takeaways
Artificial intelligence (AI) has fundamentally shifted its narrative as an investment tool in recent years. What began as a hot trading trend has matured into a tangible, capital-intensive engine driving global economic transformation, as we move through 2026.
The early, broad-based speculation has given way to a long-term growth phase characterized by unprecedented corporate investment and a strategic rotation within the equity market. As the world’s largest asset manager, BlackRock, asserts in its 2026 outlook, this theme is not nearing exhaustion. Instead, we are witnessing the deepening of a capital cycle in which precision matters more than ever.
This transition of AI from a fleeting trend to a long-term economic pillar puts AI-focused exchange-traded funds (ETFs) directly in the spotlight. For investors seeking to capture returns from what is being called the ‘broadening bull market,’ these diversified funds offer a strategic way to gain exposure to the massive capital expenditures and productivity gains now unfolding.
The $500 Billion Bet
According to recent insights from Goldman Sachs (GS - Free Report) , investment in AI is reaching unprecedented levels, with Wall Street analysts predicting in December 2025 that capital spending by AI-related companies will reach $527 billion in 2026. Impressively, this figure reflects an upward revision from the earlier projection of $465 billion, estimated at the start of the third-quarter earnings season.
This sheer scale of investment in AI is driven by the following key growth drivers:
The Infrastructure Supercycle: We are witnessing a "Phase 2" of the AI trade, where "Hyperscalers" like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Meta Platform (META - Free Report) are aggressively building data centers. This is not just about chips; it includes a massive ecosystem of demand for power generation, cooling systems and specialized networking hardware.
The Transition to Revenue Model: 2026 is viewed as the "transition year." The focus is shifting from pure infrastructure to AI-enabled revenue models. Software and services firms are finally beginning to prove their worth by delivering tangible productivity gains to enterprise clients.
Broadening Adoption: As noted in BlackRock’s 2026 Outlook (cited in a CNBC press release), the AI bull market is "broadening out." While 2025 was dominated by a few "Magnificent" names, 2026 is seeing growth spill over into utilities (to power AI), construction (to build data centers), and specialized semiconductor laggards.
Outlook Beyond 2026
Looking beyond 2026, this combination of under penetrated capex, an expanding set of AI use cases, and deliberate institutional portfolio tilts suggests AI will remain a structural growth theme rather than a one-cycle story.
To this end, it is imperative to mention that predictions from many data sources suggest the global AI market will comfortably surpass the trillion-dollar threshold by 2030, driven by explosive growth in generative AI, cloud computing and infrastructure.
The Compelling Case for AI ETFs
With AI maturing into a long-duration growth story, investors continue to keep their portfolio focused on it. To this end, in mid-December last year, survey data from The Motley Fool indicated that 93% of AI investors intend to remain invested, with 36% planning to increase their allocation this year.
However, individual stock picking in the AI space has become increasingly risky, as ‘sentiment resets’ and elevated valuations have driven volatility in the recent past and may do so again.
Against this backdrop, AI ETFs are seeing a massive influx of investor capital, as they provide a "safety in numbers" approach while ensuring investors don't miss out on the next leg of the supercycle.
Therefore, investors who would like to capture the upside from escalating AI capex, AI revenue adoption and productivity gains over the coming decade may consider the following AI-focused ETFs:
iShares A.I. Innovation and Tech Active ETF BAI
This fund, with assets worth $8.52 billion, offers exposure to 42 global AI and technology equities across all market capitalizations, chosen through bottom-up, research-driven fundamental investing. Its top three holdings include Nvidia (NVDA - Free Report) (8.19%), Broadcom (AVGO - Free Report) (7.45%) and GOOGL (4.67%).
BAI has soared 23.7% over the past year. The fund charges 55 basis points (bps) as fees.
Global X Artificial Intelligence & Technology ETF (AIQ - Free Report)
This fund, with net assets worth $7.82 billion, offers exposure to 86 companies that potentially stand to benefit from the further development and utilization of AI technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data. Its top three holdings include GOOGL (4.47%) and Micron Technology (MU - Free Report) (3.77%).
AIQ has gained 30.9% over the past year. The fund charges 68 bps as fees.
iShares Future AI & Tech ETF ARTY
This fund, with net assets worth $2.19 billion, offers exposure to 86 companies at the forefront of AI innovation in areas including generative AI, AI data & infrastructure, AI software and AI services. Its top three holdings include MU (6.38%), Taiwan Semiconductor (TSM - Free Report) (4.99%) and Advanced Micro Devices (AMD - Free Report) (4.55%).
ARTY has gained 30.1% over the past year. The fund charges 47 bps as fees.
Roundhill Generative AI & Technology ETF (CHAT - Free Report)
This fund, with assets under management (AUM) worth $1.03 billion, offers exposure to 49 companies involved in the investment theme of artificial intelligence, generative artificial intelligence and related technologies. Its top three holdings include GOOGL (6.77%), NVDA (6.59%) and MSFT (5.21%).
CHAT has surged 43% over the past year. The fund charges 75 bps as fees.