How to invest in the AI Build-Out: Expert

The team at Canaccord Genuity have highlighted AI stocks to target.

A new report from Canaccord Genuity has outlined how investors can position their portfolios for the emerging artificial intelligence build-out. 

AI adoption is scaling rapidly, and it is now being considered a structural growth theme in global equities.

Hand with AI in capital letters and AI-related digital icons.

Image source: Getty Images

Rising earnings and visible demand

According to the report, the investment in infrastructure required to build, train, and deploy AI systems at scale represents a multi-year capital cycle with visible demand, rising earnings, and strong competitive positions across the supply chain. 

The commercial applications for AI are broad: 

  • automating software engineering
  • improving ad targeting
  • accelerating scientific research
  • optimising supply chains
  • transforming enterprise workflows. 

Deploying these systems at scale requires substantial infrastructure, spanning advanced semiconductors, hyperscale data centres, high-performance networking, and significant power generation capacity. 

The depth of this capital requirement, combined with the breadth of end-market demand, is what makes AI a structural rather than cyclical investment theme.

The pillars supporting AI infrastructure

Canaccord said that adoption and monetisation are accelerating. 

Data shows ChatGPT reached 900 million weekly active users in February 2026 – a 350% increase in 18 months. 

AI adoption has moved well beyond  early experimentation. Revenue has followed. Enterprise generative AI spending surged from approximately US$11.5 billion in 2024 to May-24 US$37 billion in 2025, a threefold increase.

At the same time, falling AI costs are accelerating demand and valuations have de-rated while earnings revisions remain positive. 

The pullback in AI-linked equities over the past six months has compressed valuations to levels where the market appears to be pricing in deceleration risk. 

What should investors be targeting?

Canaccord's preferred exposure is to AI semiconductors and capital equipment. 

It listed 6 stocks for AI themed exposure: 

NVIDIA dominates AI-training GPUs, Broadcom leads custom silicon design, TSMC fabricates the leading edge chips both depend on, and ASML holds a monopoly in the lithography systems underpinning advanced production. 

Amazon and Microsoft offer the largest and most profitable cloud platforms, where AI workloads are driving revenue reacceleration and backlog growth.

For investors looking to basket these companies together, Canaccord pointed towards the Global X Semiconductor ETF (ASX: SEMI). 

The report said SEMI is the most accessible option for Australian-based investors: ASX-listed in Australian dollars, across the 30 largest global semiconductor companies, with meaningful weight in TSMC, ASML, Nvidia, and Broadcom.

However it did note that no single ETF isolates the combination of semiconductors and selective hyperscalers from the report. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Amazon, Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended ASML, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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