Artificial intelligence (AI) stocks drove market gains last year, and this doesn't apply only to the tech-heavy Nasdaq Composite. Even the Dow Jones Industrial Average got a boost from AI as Nvidia posted the biggest gain in the index -- the AI chip leader soared more than 170%.
Though momentum paused earlier this year amid concerns about economic growth, it's since picked up steam again on strong earnings reports and capital spending forecasts from AI companies. And the long-term outlook remains bright, with analysts predicting the AI market will top $2 trillion by the early 2030s.
All of this means now is a great time to invest in companies that are benefiting from this growth as well as those that are positioned to benefit down the road. To do this, you could select a few individual stocks, but with this move alone, your opportunity for gains is tied to the prospects of only these players. If you add the following asset to your portfolio, though, you could supercharge your winning power. My prediction is this new exchange-traded fund (ETF) -- involving star analyst Dan Ives -- could be the best way to invest in the AI revolution. Let's find out more.
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The potential of AI
First a quick note about why investors are so excited about AI and what to expect from the technology. AI could help companies gain in efficiency, lower costs, and more quickly develop new and better products and services. The technology also may help us in our daily lives with routine tasks and more -- we're already seeing this through AI-powered assistants on our smartphones thanks to companies such as Meta Platforms and Alphabet. And, as mentioned, all of this is set to create a trillion-dollar market.
Right now, companies are ramping up AI infrastructure needed for this revolution, but they've also started applying AI to real world problems -- and we should see more of this in the near future as this phase of "AI agents" takes off. All of this may be only the beginning of this vast opportunity as AI giant Nvidia says humanoid robots could be a growth driver down the road.
So, to benefit from the AI boom, it's a great idea to invest across players involved in various aspects of the technology as well as today's winners and tomorrow's potential winners. You can do that through the Dan IVES Wedbush AI Revolution ETF (IVES 0.85%), which just launched a few days ago.
You may recognize the name Dan Ives as this Wedbush analyst often shares his views and research on technology stocks across social media as well as in various traditional media interviews. Ives has championed the potential of AI and understands which companies are well-positioned to win. Thanks to the new Ives ETF, this top analyst's knowledge now can work for you.
Dan Ives' 30 AI stock picks
The Ives ETF invests in 30 players across AI industries, from those involved in the development of infrastructure to those applying AI to business. The fund is built around Ives' proprietary research, identifying the most compelling players at the heart of the AI spending cycle , according to Wedbush.
Microsoft, Nvidia, and Broadcom are the top three holdings in this $59 million fund, each with weightings of more than 5%. But, as promised, you'll find a variety of players such as voice AI specialist SoundHound AI and AI-driven cloud security company Zscaler.
One quick practical and very important note: When investing in ETFs be aware that they come with management fees expressed as an expense ratio. Always choose ones with a ratio of less than 1% to maximize your potential for gains. The Ives ETF fits our criteria, with an expense ratio is 0.75%.
So, as mentioned, you could pick stocks as a way to potentially score an AI victory, and that's a great idea. But you may not want to stop there. My prediction is the best way to win in this revolution is broad exposure to a wide range of strong companies involved in the space -- and you'll get this with the new Wedbush ETF, supercharged by Dan Ives' solid research.
