Nvidia’s
(NVDA)
impressive
financial
results
are
showing
the
world
just
how
important
the
need
for
computing
power
is
becoming
in
feeding
the
hunger
for
artificial
intelligence.
Nvidia
is
the
largest
provider
of
those
graphic
processors
that
are
best
suited
to
train
AI
models,
but
the
company
is
not
the
only
one
benefiting
from
an
increase
in
demand
for
AI-based
applications.
Other
firms
are
also
surfing
the
growing
demand
for
these
new
technologies,
including
software
developers,
cloud
computing
specialists,
semiconductor
makers,
and
services
providers
from
computer-aided
design
(CAD)
to
consulting.
All
these
could
be
part
of
changing
the
whole
economy
in
the
same
way
the
internet
did
when
it
emerged
30
years
ago.
As
an
investor,
one
way
to
capture
on
the
AI
trend
is
via
ETFs,
which
can
be
a
convenient
way
of
betting
money
on
this
popular
technology
through
a
diversified
portfolio
of
companies,
without
the
burden
of
picking
stocks.
Digging
into
Morningstar
data,
we
have
identified
four
ETFs
for
the
AI
trend
that
are
available
for
sale
in
Europe.
They
are
all
rate
positively
by
Morningstar’s
researchers.
This
is
due
to
being
relatively
cheap
compared
to
their
peers,
and
have
generated
solid
returns
so
far
–
though
while
still
being
relatively
young
(the
“oldest”
ETF
was
launched
in
2018).
Investors
are
reminded
that
thematic
ETFs
can
be
highly
volatile
since
they
are
focused
bets
on
specific
themes.
As
we
explored
earlier
this
week,
niche
ETFs
involve
even
more
due
diligence
than
normal.
Looking
into
the
holdings
of
some
of
these
products,
investors
will
find
a
quite
large
exposure
to
the
famous
“Magnificent
7”,
with
Nvidia
being
the
largest
holding
for
many,
followed
by
other
popular
names
such
as
Meta
Platforms
(META),
Microsoft
(MSFT),
Advanced
Micro
Devices
(AMD)
or
Salesforce
(CRM)
and
Adobe
(ADBE).
Interestingly,
the
Wisdom
Tree
Artificial
Intelligence
ETF
places
its
largest
bets
in
lesser-known
companies,
such
as
PKSHA
Technology
(3993)
of
Japan,
SentinelOne
(S),
Mediatek
(2454)
and
UiPath
(PATH).
It
also
gives
exposure
to
AMD
and
Nvidia,
but
shows
an
alternative
approach
to
the
more
obvious
stock
picks.
By
picking
the
right
ETF
for
your
investment
goals,
some
of
the
risks
that
comes
with
concentrating
your
AI
bet
on
a
single
stock
or
even
a
limited
number
of
stocks,
will
be
mitigated,
potentially
avoiding
the
risk
of
one
stock’s
return
proving
disastrous
over
time.
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