Goldman Sachs models $765 billion in annual AI capital spending for 2026, climbing toward $1.6 trillion by 2031.
For investors who want exposure to the artificial intelligence buildout without trying to pick the next NVIDIA, the iShares Future AI & Tech ETF (NASDAQ:ARTY) pitches a single-ticket solution: spread chips across the entire AI value chain, from semiconductors to data center infrastructure to software.
iShares Future AI & Tech ETF is reiterated as a buy, driven by compelling valuation and constructive technicals after a strong YoY gain. ARTY trades at a low 16.5x P/E with a high 24.8% long-term EPS growth rate, resulting in a PEG ratio near 0.7x. The ETF offers significant large-cap, growth, and international exposure, with 85% in information technology and one-third in non-U.S. equities.
Memory chips, GPU accelerators, and AI cloud infrastructure are posting some of the most explosive earnings numbers in semiconductor history, yet the ETF built around them has barely moved this year.
iShares Future AI & Tech ETF continues to outperform, rising 19.3% since August and doubling assets under management to over $2B. It maintains a concentrated portfolio focused on AI infrastructure—chips, hardware, and data centers—delivering strong momentum and sector-leading returns. Despite high volatility and premium valuation, ARTY offers exceptional liquidity and operational depth, justifying its role as a structural AI investment.
AI investment momentum remains strong, with ARTY ETF recovering from April lows and poised for new cycle highs by year-end. ARTY offers diversified AI exposure through blue-chip names at a reasonable 23x P/E, with double-digit long-term EPS growth and a fair PEG ratio. The ETF is concentrated in US large-cap growth and tech, carries higher volatility, and has a wide bid/ask spread—limit orders are recommended.
Investing in emerging industries like artificial intelligence (AI) can be risky. Past technology booms have taught investors that not every company survives, and picking the winners and losers isn't easy.
The S&P 500 (^GSPC 0.67%) is in a raging bull market that dates back to October 2022. It continues to climb to new highs, and it has delivered a gain of 20% during the past 12 months alone.
Artificial intelligence (AI) was the dominant theme in the stock market in 2024. There were standout performances from select AI chip stocks, AI software stocks, and even energy stocks, as power-hungry data centers sent electricity demand soaring.
The S&P 500 (^GSPC -0.54%) index has been on an absolute tear over the last couple of years. In fact, it's currently on track to deliver a back-to-back annual gain of 20% or more for the first time since 1999.
Going into Thanksgiving week, we are reassured of two things we already knew about artificial intelligence. They could play a role in portfolio allocation decisions for the new year.
The ARTY ETF tracks a basket of companies recognized as digital disruptors in areas like artificial intelligence. The fund recently changed the official name and ticker with a new tracking benchmark. The new market-cap weighting methodology marks a shift towards a more concentrated mega-cap tech exposure.