Investing in AI-focused ETF could lead to higher returns than S&P 500 in 2025.

From Nasdaq: 2025-01-06 06:15:00

Wall Street analysts predict a 9% rise in the S&P 500 in 2025, offering a potential total return of 10.2%. However, investing in AI could lead to even higher returns, with the Invesco QQQ Trust expected to deliver a 15.5% gain. This technology-focused ETF may see total returns approaching 16% after accounting for dividends and expenses.

Three major AI catalysts are expected to drive outperformance of the Invesco QQQ Trust over the S&P 500 in 2025. The first catalyst is the significant investment in AI-enabled data centers by big tech companies like Microsoft, with a 33% annual growth rate projected through 2030. The second catalyst is the rise of agentic AI, which could automate up to 50% of tasks in various industries. Lastly, the push into physical AI, with companies like Nvidia launching new products for humanoid robots, will expand revenue opportunities for top technology holdings in the ETF.

The Invesco QQQ Trust offers investors exposure to companies leading transformative trends in AI and robotics. With significant investments in AI development and the potential for market-beating returns, this ETF provides a cost-effective way to capitalize on emerging technologies without the need to pick individual stocks.

For investors looking to potentially capitalize on opportunities in the market, our analyst team has identified 10 stocks to consider right now. Additionally, “Double Down” stock recommendations are being issued for three companies with significant growth potential. Don’t miss out on these chances to invest in companies poised for success.



Read more at Nasdaq: 1 Tech ETF Set to Outperform as Agentic and Physical AI Transform 2025