Increased investment in AI and high-tech markets was the dominant theme of Wall Street last year, showing no signs of slowing down in 2025. This sustained momentum presents attractive opportunities for investors as it continues to grow in the US AI and technology markets.
Nvidia NVDA stocks surged on Wednesday, pushing their market capitalization above $4 trillion for the first time. This highlights the enthusiasm of investors and markets surrounding the AI sector. Nvidia is now the most valuable company in the world, surpassing Microsoft MSFT and Apple AAPL, both previously earning the $3 trillion mark, suggesting a major impact on technology and technology-related companies in a broader market.
This milestone not only highlights the accelerated momentum behind AI and Tech Rally, but also reflects the immense importance of the broader stock markets of AI chip makers and technology sector.
According to Reuters, Nvidia's rally further highlights the growing power of the technology sector, which is the biggest component of the S&P 500. In fact, the share of the Index's technology sector has increased by almost a third of its total market value.
Large-scale AI investments to drive us towards technical control
The sector is increasingly emerging as an attractive investment opportunity, as the global AI market is projected to surpass $1 trillion by 2031. According to Statista, the US AI market is expected to witness a CAGR of 26.95% from 2025 to 2031, reaching a valuation of $399.7 billion by 2031, solidifying its position as the world's largest AI market.
In addition to optimistic growth forecasts, President Trump has repeatedly emphasized his ambition to make the United States a global leader in AI. This stance further strengthens the country's position as an ideal destination for AI-related investments.
Experts remain bullish on trading AI infrastructure as global investors strengthen their commitment to the US AI market. Softbank's Masayoshi son's proposal for earlier announcements of $1 trillion Arizona Hub and President Trump's $500 billion “Stargate” initiative highlights the growing momentum behind AI investments in the US market.
ETFs to explore
Below we highlight the funds investors may consider to harness AI momentum.
ai etfs
Increased exposure to funds focused on AI offers a compelling opportunity for investors driven by the growing momentum behind the US AI and high-tech markets. These developments, along with robust market forecasts, will make AI and technology-related ETFs a strategic addition to portfolios with long-term investment perspectives.
Investors can consider Ishares US Technology ETF Iyw, Fidelity MSCI Information Technology Index ETF FTEC, Global X Artificial Intelligence & Technology ETF aiq and iShares Global Tech ETF ixn and Global X Robots & Artificial Intelligence ETF Botz.
With an average trading volume of around 795,000 shares of one month, AIQ is the most liquid option and is ideal for active trading strategies.
IYW also collects an asset base of $22.08 billion, the largest of other options. Considering annual fees, FTEC is the cheapest option, charging 0.08%, making it suitable for long-term investments.
Uranium ETF
As demand for AI spikes and clean energy grows, high-tech giants rely on nuclear power to train and operate large-scale AI models used in generating AI applications using energy-intensive data centers as fuel.
Data centers are energy-intensive, and AI applications consume even more energy than traditional computing. As a result, most tech giants are shifting to renewable energy to meet their growing energy needs and explore nuclear energy as a source.
Uranium ETFs are also an add-on to a long-term attractive strategic portfolio, as they focus on growing significantly on nuclear energy and uranium demand.
Investors can consider Global X-Uranium ETF Behind you, Vaneck Uranium+Nuclear Energy ETF NLR, Sprott Junior Uranium Miners ETF urnj and Theme Uranium & Nuclear ETF Uranium will take advantage of the potential for rising uranium markets.
This article was originally published on Zacks Investment Research (zacks.com).
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