Artificial intelligence (AI) is one of the fastest-evolving technologies in history, and while it presents significant opportunities for investors, it also creates volatility. for example, micron technology(NASDAQ:MU) Demand for the company’s data center memory chips has outpaced its ability to supply it, driving the stock up a whopping 348% over the past 12 months.
But there are also high-quality AI stocks that have fallen sharply from their 52-week highs, including:
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oracle‘s stock price has fallen 54%.
microsoft‘s stock price has fallen 26%.
advanced microdevice‘s stock price has fallen 24%.
Amazon‘s stock price has fallen 17%.
flat Nvidiais the undisputed leader in the AI semiconductor space, but recently lost 8% of its peak value. So deciding which AI stocks to buy from here can be a challenge, especially for long-term investors who don’t have time to keep up with the rapid changes in the AI landscape. Therefore, buying an exchange-traded fund (ETF) may be a better solution.
of iShares Future AI Technology ETF (NYSEMKT: Artie) owns 49 leading stocks from various sectors of the AI industry, so investors don’t have to pick winners and losers. This is why it is a great addition to a diversified portfolio.
Image source: Getty Images.
The iShares Future AI and Tech ETF aims to give investors exposure to the entire AI value chain by investing in chip and data center infrastructure suppliers, AI software developers, AI service providers, and more. The company has a global mission, which means you can invest in both US and international stocks.
Below, we’ve compiled a list of the 10 best-known and best-known stocks in this ETF, along with their respective portfolio weights.
stock
iShares ETF Portfolio Weighting
micron technology
7.61%
taiwan semiconductor manufacturing
5.51%
Nvidia
4.63%
advanced micro device
3.98%
broadcom
3.68%
coreweave
3.65%
oracle
2.95%
microsoft
2.14%
Palantir Technologies
1.90%
snowflake
1.57%
Data source: iShares. Portfolio weights are accurate as of February 20, 2026 and are subject to change.
Micron holds the largest position in the iShares ETF. Delivering high-bandwidth memory for data centers, Nvidia and AMD are incorporating this memory into their latest graphics processing units (GPUs) to help manage AI workloads. High memory capacity keeps data flowing to the GPU, reducing bottlenecks and unlocking maximum processing speed.
Nvidia’s GPUs are the best in the world for AI development, but rival chips from AMD are quickly catching up in terms of performance. Then there’s Broadcom, which helps hyperscalers design and manufacture custom data center chips called AI accelerators. It is becoming increasingly popular because it can be tailored to specific workloads.
On the software side, Microsoft has developed an AI assistant called Copilot. It’s built into nearly every existing product, including Windows and 365 (Word, Excel, Outlook), to help you be more productive. Meanwhile, Palantir Technologies offers a suite of software platforms that use AI to enable businesses and government agencies to extract significant value from their internal data.
Investing in this mix of AI stocks through the iShares ETF is not only easy, but also cost-effective. The fund has an expense ratio of 0.47%, which is high compared to passive index funds that track stock prices. S&P500(SNPINDEX: ^GSPC)That means a $10,000 investment will cost you just $47 in annual fees.
As mentioned at the beginning, Micron stock has soared recently while many other major AI stocks have fallen. The iShares ETF ended up returning 28.5% over the past 12 months. double The return of the S&P 500 during the same period.
One concern, however, is the relatively short track record of the iShares ETF in its current form. Founded in 2018 with a focus on AI and robotics, it completely restructured in August 2024 to invest more solely in AI. As a result, while it has delivered strong returns so far, it is likely not a very reliable indicator of future performance.
That said, as long as the AI industry continues to bring about widespread advances, the ETF should do well. That doesn’t mean investors should bet here. If the AI revolution hits a speed bump, investors will be exposed to serious downsides. Rather, this fund is a great addition to a diversified portfolio of other ETFs and individual stocks that don’t already have high exposure to AI themes.
Before purchasing iShares Future AI & Tech ETF shares, consider the following:
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Anthony Di Pizio has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Micron Technology, Microsoft, Nvidia, Oracle, Palantir Technologies, Snowflake, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
Struggling to pick artificial intelligence (AI) stocks? You’re not alone — try this ETF instead Original article published by The Motley Fool
