AI-focused ETF like ARTY down 20.6% from peak, includes top AI hardware/software stocks

From Nasdaq: 2025-03-11 04:59:00

The Nasdaq Composite index, home to tech companies, recently entered correction territory, falling 13.4% from its high. Investors can capitalize on this dip by buying an AI-focused ETF like the iShares Future AI and Tech ETF (ARTY), down 20.6% from its recent peak, offering exposure to top AI hardware and software stocks.

Broadcom, Nvidia, and other top AI companies make up the iShares ETF’s portfolio, with Broadcom’s AI revenue soaring 77% year-over-year. Nvidia, a leader in data center chips, faces competition from Broadcom’s customizable AI accelerators. The ETF’s concentration on AI themes allows investors to benefit from the industry’s growth without picking individual winners.

Palantir Technologies, a standout performer in the AI space last year, offers software products using AI to extract insights from data. The iShares ETF also holds other AI leaders like Amazon, Microsoft, and Alphabet. The ETF’s recent track record shows a 6.1% return since its reconstruction in August 2024, outperforming the S&P 500.

With the AI industry set to expand, tech giants plan to invest over $300 billion in hardware in 2025 alone, benefiting companies in the iShares ETF like Nvidia and Broadcom. As the sector evolves, AI cloud and software revenue could grow significantly. The iShares ETF provides a diversified way to invest in high-quality AI stocks for long-term growth potential.

Investors interested in the iShares Future AI & Tech ETF should consider the Motley Fool Stock Advisor’s top 10 stock picks for potential monster returns. The service has outperformed the S&P 500 since 2002, offering guidance on building a successful portfolio. With the AI industry poised for growth, the iShares ETF could be a strategic addition to a diversified investment strategy.



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