Investing in AI funds has surged, with global assets over USD 30 billion, led by key companies.
From Morningstar: 2025-06-24 12:14:00
Artificial intelligence and Big Data funds have seen explosive growth, with global assets totaling over USD 30 billion by the end of the first quarter this year. From voice assistants to healthcare diagnostics, AI now powers many valuable companies. The “Investing in Artificial Intelligence Handbook” explores the driving forces behind this trend.
Inflows into AI and Big Data funds surged in late 2022 after ChatGPT 3.5’s public debut, attracting Chinese investors and growing US assets to USD 5.5 billion by May 2025. Europe leads globally with USD 22.7 billion in AI fund assets. Morningstar evaluates AI stocks broadly, including companies like Vertiv, Walmart, and Tesco.
The Magnificent Seven, including Nvidia, Microsoft, and Amazon, dominate AI and Big Data fund holdings, shaping AI development and benefiting from vast data ecosystems. Their central role in AI strategies has made them essential for performance. US companies heavily influence global AI fund assets, reflecting the US’s tech innovation leadership.
The allocation dilemma in AI portfolios involves balancing exposure to dominant companies like Nvidia and Microsoft while highlighting specialized AI players. US-centric exposure poses challenges for geographic diversification within the AI theme. The high-growth but volatile nature of AI investing highlights the need for careful consideration of risks and rewards in this space. 1. The United States has surpassed 600,000 COVID-19 deaths, according to data from Johns Hopkins University. This grim milestone comes as the country continues its vaccination efforts to combat the ongoing pandemic.
2. In sports news, Novak Djokovic has won his 19th Grand Slam title at the French Open, defeating Stefanos Tsitsipas in a thrilling five-set match. Djokovic now sits just one behind the all-time record of 20 Grand Slam titles held by Rafael Nadal and Roger Federer.
3. The G7 leaders have pledged to donate one billion COVID-19 vaccine doses to lower-income countries. This commitment aims to address global vaccine inequality and help end the pandemic worldwide.
4. The European Union has approved the use of the Pfizer-BioNTech COVID-19 vaccine for children aged 12 to 15. This decision comes as countries around the world work to vaccinate younger populations and achieve herd immunity.
5. NASA has announced plans to launch two new missions to Venus between 2028 and 2030. These missions, named VERITAS and DAVINCI+, will study the planet’s geology and atmosphere in an effort to better understand its history and potential for life.
Read more at Morningstar: The Risks and Opportunities of Investing in AI