5 AI ETFs to Invest in the Biggest Opportunity in a Generation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2025
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
AI Investment Trends: The article discusses the growing importance of artificial intelligence (AI) in the stock market, highlighting the challenges of selecting individual AI stocks and suggesting that investors consider exchange-traded funds (ETFs) for exposure to AI companies.
Top AI ETFs: Five notable AI-focused ETFs are presented, including Invesco QQQ ETF, iShares Future AI & Tech ETF, Invesco AI and Next Gen Software ETF, GlobalX Artificial Intelligence & Technology ETF, and ARK Autonomous Technology & Robotics ETF, each with unique characteristics and holdings.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
Current: 309.000
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alphabet's Retreat: An Opportunity for Long-Term Investors?
Alphabet's Performance: Alphabet (NASDAQ: GOOGL) has shown strong performance over the past year, climbing over 68% due to its leadership in AI, consistent earnings beats, and growth in cloud and advertising sectors, despite a recent slip into negative territory.
Earnings Report Highlights: The latest quarterly results exceeded earnings and revenue expectations, with earnings per share at $2.82 and revenue reaching $113.83 billion, marking a 17% year-over-year growth, particularly driven by a surge in cloud revenue.
Investment Concerns: Despite strong fundamentals, Alphabet's stock has faced recent pullbacks, raising questions among investors about potential fatigue or long-term buying opportunities, especially in light of expected capital expenditures between $175 billion and $185 billion for 2026.
AI and Market Position: Alphabet continues to expand its AI capabilities and maintain a moderate buy rating, with analysts suggesting that the current stock price offers a significant upside, reflecting the company's ambition and resilience in a challenging tech environment.
See More
AI Competition Intensifies as ChatGPT Faces Challenges
- User Growth Comparison: Google's Gemini app has reached 750 million monthly active users, increasing by 100 million from the previous quarter, closely approaching ChatGPT's estimated 800 million users, indicating a significant threat to ChatGPT's market share.
- Revenue Driver: Although Google does not directly attribute revenue to Gemini, its strong growth in cloud and services units suggests that Gemini is a key contributor to the company's overall performance, with annual revenue surpassing $400 billion for the first time in 2025, marking a 15% year-over-year increase.
- Competitive Landscape: OpenAI faces fierce competition from major tech players like Google, as Gemini's rapid rise could erode ChatGPT's market share, forcing OpenAI to increase its infrastructure investments to maintain competitiveness.
- Funding Needs: To address competition and infrastructure commitments, OpenAI is reportedly close to completing a funding round of up to $100 billion, highlighting the financial pressures it faces in sustaining innovation and market expansion.
See More
Broadcom Could Emerge as New AI Giant
- Significant AI Growth: Broadcom's AI semiconductor revenue surged 74% year-over-year in the latest quarter, with projections indicating it will reach $8.2 billion in Q1, showcasing strong market demand and growth potential.
- Record Backlog: The backlog for Broadcom's AI switches has exceeded $10 billion, reflecting the company's critical role in AI data center buildouts and strong market confidence.
- Product Differentiation: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, aimed at enhancing security and speed for enterprises using AI, thereby further solidifying its market position.
- Competitive Strategy: Broadcom's custom XPUs complement Nvidia and AMD's general-purpose GPUs, allowing the company to grow rapidly in specific niches while avoiding the pressures of direct competition.
See More
Three Stocks Set to Outperform the Market in 2026
- Alphabet Cloud Growth: Alphabet's cloud business had an annual revenue run rate of approximately $70 billion at the end of 2025, with a backlog growth exceeding 100% year-over-year to $240 billion in Q4, which is expected to significantly enhance the company's profitability in 2026 and solidify its leadership in the AI sector.
- BeOne Drug Development Progress: BeOne Medicines plans to announce Phase 3 study results for Brukinsa in combination with rituximab in the first half of 2026, and is expected to gain U.S. regulatory approval for sonrotoclax, further enhancing its competitiveness in the blood cancer treatment market.
- Rhythm Drug Approval Outlook: Rhythm Pharmaceuticals' Imcivree is anticipated to receive FDA approval for treating acquired hypothalamic obesity by March 20, 2026, which would significantly expand its market potential as this condition affects more patients than the combined total of its three existing indications.
- Multiple Clinical Trial Data Releases: Rhythm also plans to report top-line data from a Phase 3 study evaluating Imcivree in four other genetic diseases in Q1 2026 and disclose results from an exploratory Phase 2 study on Prader-Willi syndrome in the first half of the year, further boosting investor confidence.
See More
Chou Associates Reduces SiriusXM Holdings Stake
- Share Reduction Details: Chou Associates Management Inc. reduced its stake in SiriusXM Holdings by 292,873 shares in Q4 2025, valued at approximately $6.30 million, indicating a cautious approach towards the stock.
- Holding Proportion Change: As of December 31, 2025, Chou Associates' stake in SiriusXM decreased to 4.06%, which may impact its overall portfolio risk management strategy.
- Company Financial Overview: SiriusXM reported $8.56 billion in revenue and $805 million in net income for 2025, with a dividend yield of 5.02%, demonstrating stable cash flow and profitability.
- Market Performance Analysis: As of February 12, 2026, SiriusXM shares were priced at $21.70, down 11.6% over the past year, underperforming the S&P 500 by 24.47 percentage points, reflecting market concerns about its future growth.
See More
UK Government Strengthens Online Safety Legislation for AI Chatbots
- Legislative Loophole Closure: The UK government has announced that AI chatbots will be subject to the Online Safety Act, requiring platforms like OpenAI's ChatGPT, Google's Gemini, and Microsoft's Copilot to combat illegal content or face fines or bans, aiming to protect children from harmful material.
- New Regulations Implementation: Prime Minister Keir Starmer stated that the new regulations will set minimum age limits for social media platforms and restrict children's access to AI chatbots and VPNs, reflecting a proactive regulatory approach to address mental health issues among children.
- Response to International Trends: This legislation aligns with similar measures in Australia and Spain, which have banned social media access for those under 16, indicating a growing global concern for youth online safety, with the UK actively following suit.
- Future Legislative Process: The amendment to the Children's Wellbeing and Schools Bill has passed in the House of Lords and will now be reviewed by the House of Commons, and if both houses agree, it will further advance the implementation of laws ensuring children's safe use of social media.
See More
Alphabet's Retreat: An Opportunity for Long-Term Investors?
Alphabet's Performance: Alphabet (NASDAQ: GOOGL) has shown strong performance over the past year, climbing over 68% due to its leadership in AI, consistent earnings beats, and growth in cloud and advertising sectors, despite a recent slip into negative territory.
Earnings Report Highlights: The latest quarterly results exceeded earnings and revenue expectations, with earnings per share at $2.82 and revenue reaching $113.83 billion, marking a 17% year-over-year growth, particularly driven by a surge in cloud revenue.
Investment Concerns: Despite strong fundamentals, Alphabet's stock has faced recent pullbacks, raising questions among investors about potential fatigue or long-term buying opportunities, especially in light of expected capital expenditures between $175 billion and $185 billion for 2026.
AI and Market Position: Alphabet continues to expand its AI capabilities and maintain a moderate buy rating, with analysts suggesting that the current stock price offers a significant upside, reflecting the company's ambition and resilience in a challenging tech environment.
See More
AI Competition Intensifies as ChatGPT Faces Challenges
- User Growth Comparison: Google's Gemini app has reached 750 million monthly active users, increasing by 100 million from the previous quarter, closely approaching ChatGPT's estimated 800 million users, indicating a significant threat to ChatGPT's market share.
- Revenue Driver: Although Google does not directly attribute revenue to Gemini, its strong growth in cloud and services units suggests that Gemini is a key contributor to the company's overall performance, with annual revenue surpassing $400 billion for the first time in 2025, marking a 15% year-over-year increase.
- Competitive Landscape: OpenAI faces fierce competition from major tech players like Google, as Gemini's rapid rise could erode ChatGPT's market share, forcing OpenAI to increase its infrastructure investments to maintain competitiveness.
- Funding Needs: To address competition and infrastructure commitments, OpenAI is reportedly close to completing a funding round of up to $100 billion, highlighting the financial pressures it faces in sustaining innovation and market expansion.
See More
Broadcom Could Emerge as New AI Giant
- Significant AI Growth: Broadcom's AI semiconductor revenue surged 74% year-over-year in the latest quarter, with projections indicating it will reach $8.2 billion in Q1, showcasing strong market demand and growth potential.
- Record Backlog: The backlog for Broadcom's AI switches has exceeded $10 billion, reflecting the company's critical role in AI data center buildouts and strong market confidence.
- Product Differentiation: Broadcom has launched the industry's first Wi-Fi 8 access point and switch system, aimed at enhancing security and speed for enterprises using AI, thereby further solidifying its market position.
- Competitive Strategy: Broadcom's custom XPUs complement Nvidia and AMD's general-purpose GPUs, allowing the company to grow rapidly in specific niches while avoiding the pressures of direct competition.
See More
Three Stocks Set to Outperform the Market in 2026
- Alphabet Cloud Growth: Alphabet's cloud business had an annual revenue run rate of approximately $70 billion at the end of 2025, with a backlog growth exceeding 100% year-over-year to $240 billion in Q4, which is expected to significantly enhance the company's profitability in 2026 and solidify its leadership in the AI sector.
- BeOne Drug Development Progress: BeOne Medicines plans to announce Phase 3 study results for Brukinsa in combination with rituximab in the first half of 2026, and is expected to gain U.S. regulatory approval for sonrotoclax, further enhancing its competitiveness in the blood cancer treatment market.
- Rhythm Drug Approval Outlook: Rhythm Pharmaceuticals' Imcivree is anticipated to receive FDA approval for treating acquired hypothalamic obesity by March 20, 2026, which would significantly expand its market potential as this condition affects more patients than the combined total of its three existing indications.
- Multiple Clinical Trial Data Releases: Rhythm also plans to report top-line data from a Phase 3 study evaluating Imcivree in four other genetic diseases in Q1 2026 and disclose results from an exploratory Phase 2 study on Prader-Willi syndrome in the first half of the year, further boosting investor confidence.
See More
Chou Associates Reduces SiriusXM Holdings Stake
- Share Reduction Details: Chou Associates Management Inc. reduced its stake in SiriusXM Holdings by 292,873 shares in Q4 2025, valued at approximately $6.30 million, indicating a cautious approach towards the stock.
- Holding Proportion Change: As of December 31, 2025, Chou Associates' stake in SiriusXM decreased to 4.06%, which may impact its overall portfolio risk management strategy.
- Company Financial Overview: SiriusXM reported $8.56 billion in revenue and $805 million in net income for 2025, with a dividend yield of 5.02%, demonstrating stable cash flow and profitability.
- Market Performance Analysis: As of February 12, 2026, SiriusXM shares were priced at $21.70, down 11.6% over the past year, underperforming the S&P 500 by 24.47 percentage points, reflecting market concerns about its future growth.
See More
UK Government Strengthens Online Safety Legislation for AI Chatbots
- Legislative Loophole Closure: The UK government has announced that AI chatbots will be subject to the Online Safety Act, requiring platforms like OpenAI's ChatGPT, Google's Gemini, and Microsoft's Copilot to combat illegal content or face fines or bans, aiming to protect children from harmful material.
- New Regulations Implementation: Prime Minister Keir Starmer stated that the new regulations will set minimum age limits for social media platforms and restrict children's access to AI chatbots and VPNs, reflecting a proactive regulatory approach to address mental health issues among children.
- Response to International Trends: This legislation aligns with similar measures in Australia and Spain, which have banned social media access for those under 16, indicating a growing global concern for youth online safety, with the UK actively following suit.
- Future Legislative Process: The amendment to the Children's Wellbeing and Schools Bill has passed in the House of Lords and will now be reviewed by the House of Commons, and if both houses agree, it will further advance the implementation of laws ensuring children's safe use of social media.
See More
