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.
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The fund is an investment vehicle that aims to capitalize on the rapid expansion and potential of artificial intelligence (AI) technologies. It dedicates at least 80% of its assets to securities of companies listed in its underlying index. This index comprises both U.S. and international firms that are heavily involved in the development, production, and marketing of AI technologies and services. These include emerging fields such as generative AI, AI infrastructure, software solutions, and various services tied to the AI sector. The strategic focus on AI technology providers positions the fund to potentially benefit from the sector’s growth and innovation.
Investments in companies that are at the forefront of generative artificial intelligence, focusing on the creation of new content and data through AI algorithms. These technologies include AI that can create text, images, music, and other forms of media that resemble human-generated content. Generative AI has applications in a wide range of industries, from entertainment to design, making it a compelling area for growth.
The fund targets companies involved in developing the foundational components necessary for AI technologies to function, such as data processing units and cloud computing services. These infrastructural elements are crucial for training AI models and deploying AI solutions at scale, thereby serving as the backbone of the AI technology ecosystem.
Investment is also channeled into firms that are pioneering AI software solutions. This encompasses a broad array of applications, including machine learning platforms, AI-enabled analytics tools, and software that facilitates AI model development and deployment. Such software plays a key role in enabling businesses across various sectors to implement AI capabilities into their operations.
This segment includes companies that provide professional services related to AI, such as consulting, system integration, and managed services. These services help organizations to adopt and integrate AI technologies within their existing infrastructure and operations, thereby driving the adoption of AI across sectors.