“So many AI stocks, so little time” is a reasonable sentiment, likely held by a fair amount of market participants. It’s also one with increasing validity. That’s because more companies across all market-cap segments are attempting to make AI inroads.
The good news is artificial intelligence investing doesn’t need to be daunting. In fact, ETFs like the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) make it more efficient. That’s particularly so in the large-/mega-cap realm. Confirming the strength of the artificial intelligence trade, QQQ and QQQM are higher by nearly 14% YTD. They’ve been buoyed by rosters chock full of some of the most attractive large-scale AI adopters/enablers.
One way of looking at QQQ and QQQM, and an accurate one at that, is that these ETFs streamline AI investing for advisors and investors. They don’t stock-pick, hoping to find the “best” artificial intelligence names. That’s because some of the stocks that arguably fit that bill are held by the Invesco ETFs.
Sweet 16 for QQQ, QQQM
The advantages of the fairly broad QQQ/QQQM rosters are indirectly confirmed by recent analyst commentary on AI equities. Wedbush analyst Dan Ives, one of the most widely followed analysts covering AI stocks, recently unveiled a list of 16 AI stocks to own into year-end. That’s a sizable number. And it’s one many investors can’t cobble together for size. But many of his “sweet 16” are QQQ/QQQM member firms.
That group includes Alphabet (GOOG), Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), and Palantir (PLTR). That quintet combines for approximately 32% of the QQQ/QQQM portfolios.
“We believe the AI Revolution is now heading into its next stage of growth as the tidal wave of Big Tech capex spending coupled by enterprise use cases now exploding across verticals is creating a number of AI winners in the tech world,” observed Ives in a recent report.
The five aforementioned stocks are among the splashier AI-related names. That implies that quintet could be reason enough for investors to evaluate QQQ and QQQM. But there’s more to the ETFs’ respective AI stories. Consider cybersecurity. Ives says CrowdStrike Holdings (CRWD) and Palo Alto Networks (PANW) are the best artificial intelligence cybersecurity names to own.
The analyst also anointed Facebook parent Meta Platforms (META), as the top consumer-oriented AI stock to consider.
Regarding artificial intelligence turnaround stories, Ives likes Apple (AAPL) and Tesla (TSLA). Those two stocks combine for over 10% of the QQQ/QQQM lineups.
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