A new report from Global X has provided an overview of the recent US earnings season. One key takeaway is that artificial intelligence focussed ETFs could be a winner.
The key takeaway from the latest US reporting season is simple: company earnings are coming in stronger than investors expected. Most US companies have now reported, and earnings growth has been notably higher than last quarter, and importantly, it hasn't been driven by just a handful of big tech names.
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Why this is good news for ETF investors
According to the report, earlier concerns around the Middle East pushed oil prices higher and increased volatility, but markets have since settled and refocused on fundamentals.
For long-term investors, broad earnings strength is reassuring. It suggests the market is being supported by real business growth, not just hype or speculation.
This matters for three reasons:
- Broader earnings reduce reliance on any single company or sector
- It supports diversification – a core reason many investors use ETFs
- It lowers the risk that one weak area can derail overall portfolio outcomes
AI development
The report also reinforced that artificial intelligence continues to attract attention, but what's changed is where the evidence is showing up.
Large global technology companies are now spending real money on AI infrastructure including data centres, cloud capacity, chips and power. Capital spending plans across the biggest US tech firms have been revised higher, and cloud revenue growth is accelerating rather than slowing.
This confirms that AI demand is real, not theoretical and the benefits are spreading beyond software into hardware, infrastructure and materials.
Why artificial intelligence ETFs are a strategic play
The appeal of AI ETFs is the opportunity to diversify across the whole artificial intelligence landscape.
AI is more than just chatbots and headline-grabbing software.
The sector spans semiconductor manufacturers, cloud infrastructure providers, cybersecurity firms, robotics companies, data center operators, and businesses developing machine learning applications across industries such as healthcare, finance, and transportation.
How to target artificial intelligence ETFs
There are several options for investors to consider who are aiming to target this emerging sector.
One option is the Global X Ai Infrastructure ETF (ASX: AINF).
It focuses on the physical and operational backbone enabling AI's global expansion. While most AI investments focus on chips or platforms, AINF ETF looks underneath the surface at the energy, data, and materials infrastructure powering this transformation.
This fund has risen more than 60% in the last 12 months.
Another option to consider is the Global X Artificial Intelligence ETF (ASX: GXAI).
It seeks to invest in companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data.
