The rise of artificial intelligence (AI) is transforming the stock market, with generative AI presenting new opportunities. Traditional AI excels at tasks like pattern recognition, while generative AI creates content. ChatGPT, a popular generative AI application, gained 30 million users within two months. The generative AI market is projected to grow from $71.4 billion in 2025 to $890.6 billion by 2032, with a compound annual growth rate of 43.4%.

Investing in generative AI can be complex, but thematic exchange-traded funds (ETFs) offer diversified exposure. The VanEck Semiconductor ETF (NASDAQ: SMH) tracks semiconductor companies like Nvidia and Taiwan Semiconductor, up 59% in the past year. The State Street SPDR S&P Semiconductor ETF (NYSEMKT: XSD) provides access to 43 companies with an equal-weight approach, up 41% in the past year. The iShares Semiconductor ETF (NASDAQ: SOXX) focuses on U.S. semiconductor companies, up 56% in the past year.

Consider the State Street SPDR S&P Semiconductor ETF for broad exposure to semiconductor stocks, or the iShares Semiconductor ETF for U.S.-based companies. The VanEck Semiconductor ETF offers quick access to top semiconductor companies like Nvidia and Taiwan Semiconductor. These ETFs have expense ratios around 0.35% and have shown strong performance in the past year, making them attractive options for investors.

Read more at Nasdaq: Can Generative AI Drive These 3 ETFs to 43% Gains This Year?