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

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: 

• Amazon (NASDAQ: AMZN)
• ASML (NASDAQ: ASML)
• Broadcom (NASDAQ: AVGO)
• Microsoft (NASDAQ: MSFT)
• Nvidia (NASDAQ: NVDA)
• Taiwan Semiconductor Manufacturing (NYSE: TSM). 

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. 

The post How to invest in the AI Build-Out: Expert appeared first on The Motley Fool Australia.

Major technological shifts, from the expansion of the internet back to mass automobile production, highlight how early exposure to structural change can drive meaningful value creation.

Today, artificial intelligence (AI) and semiconductor infrastructure are shaping up as two of the most important themes of the next decade.

The challenge, however, is not recognising the trend — it is figuring out how to invest in it before the opportunity becomes obvious to everyone.

The rise of AI and semiconductor infrastructure

AI is no longer a niche concept. It is rapidly becoming embedded across industries, from healthcare and finance to logistics and defence.

Behind that shift sits an enormous infrastructure buildout.

Data centres are expanding. Cloud computing demand continues to rise. High-performance chips are becoming more critical with each new generation of AI models.

Semiconductors are effectively the "picks and shovels" of this transformation. Without them, AI simply does not function.

At the same time, the ecosystem is far broader than just chipmakers. It includes equipment suppliers, data centre operators, network providers, and unique part manufacturers.

That complexity is part of what makes the opportunity so compelling — and also what makes it difficult for investors to navigate.

Why picking winners can be harder than it looks

While it may be tempting to back a handful of individual companies, this approach comes with risks.

Even if an investor correctly identifies a leading player, there is no guarantee it will capture the majority of value over time.

Technology cycles can shift quickly. Competitive dynamics evolve. New entrants can disrupt incumbents.

In many cases, the biggest winners are not always the most obvious at the start.

That is one reason some investors are increasingly looking beyond individual stocks and toward broader exposure.

A different approach: Thematic ETFs

Exchange-traded funds (ETFs) offer a way to gain exposure to a theme rather than a single company.

Instead of trying to pick one or two winners, investors can access a diversified basket of businesses that are all positioned to benefit from the same structural trend.

Two ASX-listed ETFs that focus directly on this theme include:

• Global X AI Infrastructure ETF (ASX: AINF) – targets companies enabling AI through data centres, cloud infrastructure, and hardware
• Global X Semiconductor ETF (ASX: SEMI) – provides exposure to global semiconductor leaders, including chip designers, manufacturers, and equipment providers

These types of ETFs reflect the reality that AI is not just an endpoint use case story; it is also an infrastructure story.

They provide exposure across the value chain rather than relying on a single company to execute perfectly.

Where these ETFs can fit in a portfolio

For many investors, broad index ETFs remain the foundation of a portfolio. These provide exposure to the overall market and help manage risk through diversification.

Thematic ETFs, on the other hand, tend to play a different role.

They can be used as a satellite allocation — a smaller portion of a portfolio designed to target specific areas of potential growth.

In this context, an investor might allocate a portion of their capital to themes like AI infrastructure, while maintaining core holdings elsewhere.

This allows for targeted exposure without overcommitting to a single idea.

It also aligns with a broader strategy of building a portfolio over time, focusing on quality, diversification, and compounding.

The trade-offs to consider

While thematic ETFs offer clear advantages, they are not without trade-offs.

Because they are more focused, they can be more volatile than broad market funds. They may also become crowded if investor enthusiasm runs ahead of fundamentals.

And importantly, not every theme will deliver the returns investors expect.

However, for investors who believe AI and semiconductors could remain at the centre of global growth, the question may not be whether to gain exposure, but how.

Foolish Takeaway

AI and semiconductor infrastructure are already reshaping industries and attracting enormous global investment.

For those looking to participate without picking individual winners, ETFs like AINF and SEMI offer a simple, diversified entry point.

Used thoughtfully within a broader portfolio, they may provide exposure to one of the most powerful investment themes of the coming decade before it becomes fully priced in.

The post As AI spending accelerates these ASX ETFs could help you tap into the boom appeared first on The Motley Fool Australia.

Traditionally, ETFs were seen as a way to track broad markets or indexes. These were often indexes such as the S&P/ASX 200 Index (ASX: XJO) or the S&P 500 Index (SP: .INX). 

Funds that track these indexes are still great cornerstones of many portfolios. However, targeting emerging sectors can also help capture future growth. 

These are often referred to as thematic ASX ETFs. 

New insights from Global X have highlighted two such sectors that could be set for growth. 

Indian market lag creates opportunity 

A new report from Global X has reinforced the opportunity for Indian equities. 

However, it is important to point out that they have had a rough start to 2026. 

According to the report, the Indian share market started 2026 with its worst relative performance versus emerging markets in over 30 years.

However, there are three key tailwinds set to kick in that could help future growth. 

Firstly, the ETF provider pointed towards policy stability. 

Global X said India's government is reducing its fiscal deficit while maintaining significant capital expenditure. This is evident across transport, energy, and defence. 

Continued investment in infrastructure supports long-term productivity, while incentives for electronics, semiconductors, and clean energy help shore up domestic manufacturing and supply-chain resilience.

Secondly, trade clarity with the US is improving. 

The long-anticipated US-India trade deal removed a major overhang for markets, easing tariff uncertainty and improving sentiment among foreign investors. 

Finally, AI infrastructure is emerging as a growth engine. 

Global X said major global tech companies (including Amazon, Microsoft, Google, Meta, and others) have announced large-scale commitments to AI, cloud, and data centre buildouts across the country. 

With hyperscaler spending accelerating, India is aiming to transition from an outsourcing destination to a foundational AI infrastructure hub.

ASX ETFs to consider if you are looking for exposure to Indian equities include: 

• The Global X India Nifty 50 ETF (ASX: NDIA)
• Betashares India Quality ETF (ASX: IIND)

AI infrastructure buildout 

Another global sector set for future growth is AI and semiconductors.

Of course, the growth of artificial intelligence is not a new idea. 

However, Global X has outlined the case that the semiconductor sector is moving through an important transition from cyclical to structural. 

What this means is the first phase of the AI trade was driven by demand for compute, concentrating gains in a small group of AI chip designers and hyperscalers as training and inference scaled rapidly. 

Now, as AI systems grow, tightening memory supply, surging storage needs, and rising data centre power demands are revealing infrastructure constraints. This is shifting the story from pure compute to a broader build-out across semiconductors and physical assets.

The AI build-out is now spreading across two distinct layers. The first is the digital layer, which sits within the semiconductor ecosystem and includes memory, foundries, chip designers, equipment, and advanced packaging.

The second is the physical layer, which allows that compute to operate at scale. This includes electricity generation, grid upgrades, data centres, cooling systems, and the broader industrial capacity required to support them. As AI workloads grow, this layer becomes just as critical as the chips themselves.

To target semiconductors directly, an ASX ETF to consider is the Global X Semiconductor ETF (ASX: SEMI). 

For investors looking to target the physical layer of the AI buildout, a fund to consider is the Global X AI Infrastructure ETF (ASX: AINF). 

The post Niche ASX ETFs headed for massive growth appeared first on The Motley Fool Australia.

On top of that, they provide great diversification in just one trade, and there is plenty of choice, with 423 of them on the market today.

In 2025, Aussies sank a net $53 billion into ASX ETFs, which represents a 75% increase on 2024.

Investors understand that ETFs tend to be slower-moving that individual shares, given they reflect the collective performance of a basket of stocks.

But 40% to 70% returns in a single year are highly impressive.

Let's explore three ASX ETFs that delivered this remarkable range of returns last year.

Global X Gold Bullion ETF (ASX: GXLD)

Last year, Global X Gold Bullion ETF returned 73.8% to investors amid another stupendously good year for the yellow metal.

The gold price rose by 65% in 2025 — its best year for growth since 1979 — and that was on top of a 27% gain in 2024.

Reflecting this run, GXLD has delivered an impressive three-year average return of 28.14%, but a weaker (though still very solid!) five-year average of 16.21%.

In 2026, the gold price has gone even crazier. It's already up 24% in the year to date, and we're still in January.

The gold price has exceeded all previous forecasts for 2026, rising close to US$5,600 per ounce during the week.

Gold has a variety of tailwinds, including a structural shift by central banks to diversify away from the USD, ongoing geopolitical tensions, expectations of lower interest rates in the US, and uncertainty over the medium- to long-term impact of US tariffs rolled out last year.

GXLD offers investors a simple and cost-effective way to invest in physical gold.

The ETF tracks the price of gold bullion in Australian dollars, before fees and expenses.

The management fee is 0.15% and there is $617 million worth of assets under management.

As physical gold is a non-yielding investment, the GXLD does not pay dividends.

Betashares Global Banks Currency Hedged ETF (ASX: BNKS)

Last year, Betashares Global Banks Currency Hedged ETF returned 46.54% to investors.

The goal of this ETF is to allow Aussie investors to diversify outside of our Big Four, led by Commonwealth Bank of Australia (ASX: CBA).

The BNKS ETF invests in the world's largest banks outside of Australia, including JP Morgan, Bank of America, and HSBC.

This ASX ETF tracks the Nasdaq Global ex-Australia Banks Hedged AUD Index.

Hedging is a useful tool at the moment given the weakening USD against the AUD.

The main geographical skews are United States 28%, Canada 15%, Britain 11%, and Japan 9%.

This ETF has got some long-term game. It's three-year average return is 29.31% and the five-year average is 20.27%.

BNKS has $157 million in net assets and the management fee is 0.57%.

Global X Semiconductor ETF (ASX: SEMI)

In 2025, Global X Semiconductor ETF returned 43.7% to investors.

This ASX ETF tracks the Solactive Global Semiconductor 30 Index. As the name suggests, there are just 30 stocks involved here.

The three-year average return is 48.53%, reflecting surging demand for semiconductors and microchips to power artificial intelligence and advanced technology systems in recent years.

As my colleague Aaron explains, semiconductors control electricity – sometimes they let electricity flow, sometimes they block it.

This makes them essential components in modern electronics.

Semiconductors are used to make microchips, which power iPhones, cars, medical devices, and plenty of other things.

Aaron describes them as the "brains and nerves" of electronic devices.

As you'd expect, the world's biggest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company, and semiconductor designer Nvidia Corp, are two of the biggest holdings in this ETF's portfolio.

This ASX ETF has $559 million in funds under management and the fee is 0.45%.

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Many investors see ETFs as a way to reduce risk/overexposure. 

However many investors also assume this limits upside. 

It's true that an ASX ETF isn't going to double in a day of trading like a speculative penny stock. 

But thematic funds can still post market beating gains. 

As a benchmark, the S&P/ASX 200 Index (ASX: XJO) is up 2.45% year to date. 

The S&P 500 Index (SP: .INX) is up 1.72%. 

Here are three ASX ETFs that are off to a red hot start to the year – bringing investors big returns compared to these benchmark indexes. 

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

Gold shares and gold mining companies were one of the headline stories of 2025 as investors looked towards the safe-haven asset. 

This investment trend has continued into 2026. 

The Betashares Global Gold Miners ETF has already risen 22.92% since the start of the year. 

According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies (ex-Australia), hedged into Australian dollars.

The fund is up 191% over the last 12 months. 

At the time of writing, it is made up of 49 holdings, with its largest geographical exposure being to: 

• Canada (44.0%)
• United States (14.3%)
• South Africa (13.4%)

Global X Copper Miners ETF (ASX: WIRE)

This ASX ETF soared more than 7% higher yesterday. 

After yesterday's surge, the fund is now up approximately 19% year to date and 112% over the last 12 months. 

According to Global X, it provides access to a global basket of copper miners which stand to benefit from being a key part of the value chain facilitating growth in major areas of innovation such as technology, infrastructure and clean energy.

It is currently made up of 39 Australian and international holdings all operating in the metals and mining sector.

Global X Semiconductor ETF (ASX: SEMI)

Another fund off to a hot start in 2026 is the Global X Semiconductor ETF. 

It has risen by more than 11% year to date and 54% over the last 12 months. 

According to Global X, it seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. 

This includes the development and manufacturing of semiconductors.

These companies are primarily located in United States (62.25%), Taiwan (11.85%) and Netherlands (11.75%).

The post 3 ASX ETFs off to a hot start in 2026 appeared first on The Motley Fool Australia.

These include Global X Defence Tech ETF (ASX: DTEC) and Global X Semiconductor ETF (ASX: SEMI).

ASX DTEC, which returned 64% to investors last year, is benefiting from a major increase in worldwide defence spending.

This includes a commitment made last year by the 32 NATO nations to raise their spending from 2% to 5% of GDP over the next decade.

SEMI ETF, which returned 56% in 2025, is leveraging the artificial intelligence (AI) investment theme, as the world's next generation of innovative technology will require semiconductors to power it.

How much will Global X ETF investors receive?

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

The post Own DTEC or SEMI ETFs? Here's why it's a big day for you appeared first on The Motley Fool Australia.

These include Global X Copper Miners ETF (ASX: WIRE), which exposes investors to copper shares all over the world.

ASX WIRE has tailwinds due to a 37% lift in the copper price over the past year, as global demand increases due to the energy transition.

It also includes Global X Defence Tech ETF (ASX: DTEC), which has had a stellar run since inception in October 2024.

ASX DTEC is leveraging a massive increase in worldwide defence spending amid growing geopolitical tensions.

Global X reveals next lot of dividends for ASX ETFs

We have summarised the dividend amounts and dividend reinvestment prices (DRPs), rounded to two decimal places.

Global X will pay investors this Friday, 16 January.

The post Global X announces dividends for DTEC, WIRE and other ASX ETFs appeared first on The Motley Fool Australia.

Since 2022, it has fuelled the S&P 500 Index (SP: .INX) to record high after record high. 

So just how much money are companies and governments pouring into AI?

Earlier this month, OpenAI, (the company behind Chat GPT) signed one of the largest cloud contracts in history with Oracle – $300 billion worth of computing power spread across roughly five years.

Frank Holmes, CEO and chief investment officer of U.S. Global Investors Inc (NASDAQ: GROW), said earlier this week on the rise of AI: 

Last month, Intel made a historic deal with the Trump administration. The government announced it would take an $8.9 billion equity stake in Intel, in addition to billions in CHIPS Act grants. (And just this week, Nvidia said it would be investing $5 billion in the struggling tech firm.)

I believe the message is loud and clear: Semiconductors are strategic assets like oil and critical metals, and Washington is willing to invest taxpayer money to support them.

But let's take a step back. 

What are semiconductors?

A semiconductor is a special type of material that can control electricity – sometimes it lets electricity flow, sometimes it blocks it.

Because of this property, semiconductors are the building blocks of modern electronics. They're used to make microchips, which power everything from your phone to cars to medical devices.

Think of semiconductors as the "brains and nerves" inside electronic devices.

Why are they so vital for artificial intelligence?

Artificial Intelligence (AI) relies on massive amounts of data processing. To run AI models, you need chips that can handle:

• High-speed calculations (processing billions of pieces of information per second).
• Parallel processing (doing many tasks at once).
• Energy efficiency (since AI uses huge amounts of power).

Training and running AI models requires huge numbers of chips and tech giants (NVIDIA, AMD, Intel, TSMC, etc.) are racing to supply them.

Additionally, countries see semiconductors as a strategic resource (like oil in the past). There's heavy investment in domestic chip production. The next breakthroughs in AI depend on smaller, faster, more efficient chips. Whoever leads in semiconductor innovation will likely lead in AI.

If data is the new oil, semiconductors are the mines and refineries that turn it into usable energy for AI.

According to Global X, sector revenue is expected to expand by 38% over 2025-26, supported by hyperscaler investment and the diffusion of AI workloads into various industries.

How do investors gain exposure?

Like any investment theme, you can choose individual companies engaged in this field. 

You could consider investing in blue-chip stocks like:

• Nvidia (NASDAQ: NVDA)
• Taiwan Semiconductor Manufacturing (NYSE: TSM)
• ASML (NASDAQ: ASML)

Another option to gain more diversified exposure is to invest in an ASX ETF that tracks this sector. 

One that has brought strong returns in the past year is Global X Semiconductor ETF (ASX: SEMI). 

The fund focuses on companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

At the time of writing it has 30 holdings in this sector. 

The post What in the world is a semiconductor and why is it the backbone of artificial intelligence? appeared first on The Motley Fool Australia.

Ongoing strength in the US market is lifting not just ASX ETFs holding US stocks but also those holding diversified international shares.

This is because US shares dominate diversified global ETFs as America is home to so many of the world's largest and most profitable businesses.

For example, the VGS ETF is invested in about 1,300 of the world's largest companies listed in major developed countries.

About 76% of those companies are in the US.

Another example is the iShares Global 100 AUD ETF (ASX: IOO), which seeks to track the performance of the 100 biggest global equities.

Just under 81% of IOO ETF holdings are US shares.

Last night, the benchmark index for the US market, the S&P 500 Index (SP: .INX), smashed another record high at 6,698.88 points.

The S&P 500 is up 13.8% in the year to date compared to an 8.2% bump for the S&P/ASX 200 Index (ASX: XJO).

Last night, the Dow Jones Industrial Average Index (DJX: .DJI) also hit a record 46,447.13 points, up 9% this year.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) followed suit with its own record of 22,801.90 points, up 26.8% in 2025.

On the ASX today, the ASX 200 is up 0.74% and the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.69%.

Let's look at some of the ASX ETFs holding international shares that are setting new 52-week highs, if not all-time records, today.

International ASX ETFs smash records on Tuesday

The post Own IOO, IVV, or VGS ETFs? They're smashing records today! appeared first on The Motley Fool Australia.

This follows a big session on Wall Street, with the benchmark S&P 500 Index (SP: .INX) reaching another record close of 6,656.8 points.

Today's strong market appears to be having an outsized impact on ASX exchange-traded funds (ETFs).

At the time of writing, an extraordinary number of ETFs have hit new 52-week highs, or multi-year highs, on the back of today's exuberance.

In fact, at the time of writing, 68 ASX exchange-traded funds have hit new high prices.

Macroeconomic elements may be playing a role in the market surge.

Yesterday, we had the news that the US Fed Reserve has cut interest rates and Australia's jobless rate held steady last month.

ETFs are a favoured way for Aussie investors to access international markets without the hassle of trading on an overseas exchange.

The amazing three-year run for US equities has inspired Aussie investors to think beyond the ASX 200 and the local banks and miners.

The popularity of ETFs is a global trend playing out strongly in Australia.

Betashares data shows Australian investors ploughed a record $5.28 billion into ASX ETFs in July alone.

68 ASX shares setting new records today

Here is a sample of the 68 ASX exchange-traded funds smashing new highs today.

The post 68 ASX ETFs smash multi-year highs amid strong trading on Friday appeared first on The Motley Fool Australia.

I also pointed out three domestically focussed ASX ETFs. These have all raced ahead of the S&P/ASX 200 Index (ASX: XJO) in 2025. 

This proves while it's true your ETF won't triple in a day, ETFs can still bring strong returns that far outpace indexes like the ASX 200. 

Looking overseas, there are internationally focussed ETFs that have risen by even more. 

Let's look at three examples. 

BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

MNRS aims to track the performance of an index (before fees and expenses) that comprises the largest global gold mining companies. It actively excludes Australian companies.

The fund offers defensive benefits, as gold miners' fortunes are closely tied to the price of gold. This has traditionally tended to perform well during times of market volatility and uncertainty.

Unsurprisingly, the fund has skyrocketed this year along with the global gold price.

It has risen 100.48% year to date, reinforcing the upside that still exists with targeted ASX ETFs. 

Its largest exposure geographically is to Canada (47.7%), USA (14.5%) and South Africa (10.8%). 

At the time of writing it is made up of 46 holdings. No single holding represents more than 8.4% of the fund. 

iShares MSCI Emerging Markets ETF (ASX: IEM)

This globally focussed fund provides exposure to large and mid-sized companies with representation across 24 Emerging Markets (EM) countries.  

This includes more than 1,000 underlying holdings from countries such as China, Taiwan, India, South Korea, South Africa, Brazil and more. 

The fund has risen by an impressive 17.60% in 2025 so far on the back of strong tailwinds for semiconductor and technology companies in Asia. 

It offers exposure to sectors such as information technology (25%), financials (22.49%) and consumer discretionary (12.84%). 

Global X Semiconductor ETF (ASX: SEMI)

The Global X Semiconductor ETF seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.

The fund is made up of 30 holdings, with the largest geographical allocation being to the USA (64.8%) followed by Taiwan (13.0%). 

It has risen almost 12% year to date. 

The post 3 international ASX ETFs racing ahead of the ASX 200 this year appeared first on The Motley Fool Australia.

That's officially higher than its previous all-time high reached back in February. 

After facing several challenges this year, investors wondered whether the chip maker had peaked. 

First, Nvidia shares took a hit when Chinese startup DeepSeek arrived on the scene. Then the company faced further headwinds when US President Donald Trump unveiled his sweeping tariffs on 'Liberation Day'. 

Finally, Nvidia learned it would face US export controls concerning its advanced chips destined for China. This led to the company writing off $5.5 billion in inventory, which CEO Jensen Huang described as potentially the "biggest write-off in the history of the chip industry".  

On April 4, Nvidia shares reached a 52-week low of $86.62. 

Since then, Nvidia shares have made an impressive comeback, along with other AI-focused stocks. Today, they are 66% higher. 

Evidently, artificial intelligence stocks such as Nvidia have survived substantial volatility and are now firmly back in favour. 

ASX investors wanting to get on the bandwagon should consider the following two exchange-traded funds (ETFs). 

Global X Semiconductor ETF (ASX: SEMI)

The Global X Semiconductor ETF comprises 30 semiconductor businesses in developed markets, plus Korea and Taiwan. For a management expense of 0.45% per annum, the SEMI ETF provides exposure to companies positioned to benefit from the adoption of devices powered by semiconductors. As of 30 May, Nvidia shares represented 10% of the SEMI ETF and were the third-largest holding. 

The SEMI ETF has soared an impressive 39% since 7 April. However, PWC estimates that global semiconductor revenues will grow more than twice as fast as global GDP, reaching over $1 trillion by 2030. If this materialises, the SEMI ETF is likely to outperform the market by a wide margin over the next 5 years.

Global X Fang+ ETF (ASX: FANG)

The Global X Fang+ ETF is also likely to benefit from the resurgence in artificial intelligence. The FANG ETF has been a standout performer over the past five years, rising 175%. For a management expense of 0.35%, the FANG ETF includes 10 equally weighted companies, including Nvidia. Like the SEMI ETF, that means roughly 10% of the fund is invested in Nvidia shares.

Since 7 April, the FANG ETF has rebounded 33%. The FANG ETF provides investors with exposure to companies at the cutting edge of the next generation of technology, allowing investors to benefit from the use of AI in both established companies and newcomers.

The post Nvidia shares come roaring back: 2 ASX ETFs to benefit from the resurgence of AI appeared first on The Motley Fool Australia.

But since then, markets have staged a strong rebound — and few places has the recovery been more impressive than in the AI and technology sectors.

With AI stocks bouncing back and momentum building again, many investors are wondering: how to get exposure to the AI megatrend without picking individual stocks?

That's where exchange traded funds (ETFs) come in. Let's take a look at three ASX ETFs that could be a smart way to tap into the AI boom.

Global X Artificial Intelligence ETF (ASX: GXAI)

For investors looking for pure-play exposure to the AI megatrend, the Global X Artificial Intelligence ETF is worth considering. It offers access to a diversified portfolio of stocks driving AI development and adoption worldwide.

The GXAI ETF tracks the Indxx Artificial Intelligence & Big Data Index. This includes businesses developing AI software, AI-as-a-Service platforms, and the hardware powering AI and big data analytics.

This ASX ETF isn't limited by geography or sector, so it invests across the global AI value chain. Top holdings include big names like Alibaba, Tencent, Netflix (NASDAQ: NFLX), and Palantir.

Global X notes that these companies appear well-placed to benefit from a market expected to expand from US$305 billion today to US$738 billion by 2030.

Global X Semiconductor ETF (ASX: SEMI)

AI can't function without the semiconductors that power it — and that's where the Global X Semiconductor ETF comes in.

This ASX ETF gives investors access to 30 of the largest semiconductor stocks globally. This includes Taiwan Semiconductor, NVIDIA, ASML, and Broadcom.

Semiconductors are the backbone of modern technology, from AI applications and cloud computing to consumer electronics and autonomous vehicles. As the demand for processing power grows, the semiconductor sector is expected to be a key beneficiary of the AI revolution.

Global X ROBO Global Robotics & Automation ETF (ASX: ROBO)

Finally, AI isn't just about software. It is also driving the physical world of robotics and automation, and that's the focus of the Global X ROBO Global Robotics & Automation ETF.

The ROBO ETF invests in a basket of global stocks across the robotics, automation, and AI value chain. These span industries like industrials, healthcare, and logistics.

Its holdings include names like Intuitive Surgical, FANUC, and Rockwell Automation. Global X highlights these companies are operating in a global robotics market that is forecast to grow from US$72 billion in 2022 to US$283 billion by 2032.

The post AI stocks have soared since the Liberation Day Dip. 3 ASX ETFs to gain exposure appeared first on The Motley Fool Australia.

The past few months have proven especially volatile for US equity markets. 

In February, Chinese start-up company, Deepseek, arrived on the scene, wreaking havoc in the technology sector. Chipmaker Nvidia (NASDAQ: NVDA) saw its share price decline nearly 20% in one day. 

Markets took another dramatic turn as US President Donald Trump announced his reciprocal tariffs on 'Liberation Day'. Since then, there has been significant volatility. The Trump administration has reportedly entered discussions with several nations, including Japan, the European Union and China, to reach trade deals. 

While these developments have boosted market sentiment, major US indices are still materially lower than they were at the start of the year. For the year to date, the S&P 500 is down 10%, while the Nasdaq Composite Index has fallen nearly 16%. 

Retail investors have been buying in the dip at record numbers. Among the most popular trades are US technology shares and global exchange-traded funds (ETFS), according to the Australian Financial Review.

Those looking for US-focused ASX ETFS are spoilt for choice, with several options available. ASX investors can tailor their selection depending on their outlook and preferred level of diversification. 

Here are five to consider.

Vanguard US Total Market Shares Index AUD ETF (ASX: VTS)

Vanguard US Total Market Shares Index AUD ETF is one of the most popular ETFs on the ASX. It is extremely diversified across the entire US market, with 3,598 holdings. That means it includes the likes of Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT), as well as a range of microcap companies. It is especially low cost, with a management fee of 0.03%. Investors wanting to bet on the strength of the overall US economy may prefer this ETF.

 iShares S&P 500 AUD ETF (ASX: IVV)

Alternatively, those looking to invest in the largest and most well-known companies only may wish to invest in iShares S&P 500 AUD ETF. This ETF tracks the S&P 500 Index, which contains the 500 largest listed companies in America. With a management fee of 0.03%, it is also very low-cost.

Betashares Nasdaq 100 ETF (ASX: NDQ)

ASX investors bullish on the US technology sector may be more interested in the BetaShares Nasdaq 100 ETF. For a management expense of 0.48%, this ETF tracks the technology-heavy Nasdaq Composite, which comprises 100 of the largest non-financial companies.

Global X Fang+ ETF (ASX: FANG)

Investors who believe the largest US technology stocks will outperform the market from here may be interested in the Global X Fang+ ETF. For a management expense of 0.35%, this ETF provides concentrated exposure to the largest listed technology stocks in the US. It contains just 10 holdings, with each accounting for between 9% and 11% of the ETF. Given this level of concentration, it could be paired with other ETFs as part of a broader portfolio to improve diversification. 

Global X Semiconductor ETF (ASX: SEMI)

Those looking for targeted exposure to the semiconductor industry may wish to invest in the Global X Semiconductor ETF. According to IoT Analytics, satellite IoT connections are expected to grow at a CAGR of 25% between 2022 and 2027, providing a strong tailwind for the semiconductor sector. For a management expense of 0.45%, this ETF tracks 30 businesses in the Solactive Global Semiconductor 30 Index. Unlike the previously mentioned four ETFs, this ETF is also geographically diversified. As of 31 March 2025, 64% of holdings were listed in the United States, 13% in Taiwan, 12% in the Netherlands and 5% in Japan.

Foolish Takeaway

ASX Investors looking to buy US-focused ASX ETFs have several options. They can select based on their desired level of diversification, preferred sector, or specific theme. This allows investors to tailor their ETF investing to match their risk tolerance and market outlook.

The post How to choose a US focused ASX ETF for the current market environment appeared first on The Motley Fool Australia.

Soon, the next phase will kick in when 'reciprocal tariffs' will be implemented. These reciprocal tariffs will only apply to some countries. Thankfully, Australia has been spared. But countries with a high trade surplus with the United States won't be so lucky. Taiwan is one of those countries.

Last week, Trump revealed that Taiwan would face a reciprocal tariff of 32% on all imports into the United States. However, that came with a major caveat. The administration also revealed that semiconductors and semiconductor-related goods would be exempt from the tariffs.

Semiconductors are Taiwan's major international export, and its most strategic industry. The country's pride and joy is the Taiwan Semiconductor Manufacturing Co., the undisputed leader in global semiconductor technology and manufacturing.

As such, this exemption is arguably a major boon for Taiwan and, by extension, for semiconductor investors worldwide. Today, let's discuss the exchange-traded funds (ETFs) that stand to benefit the most from this situation.

Two ASX ETFs that will benefit from a semiconductor tariff exemption

First up, we have the BetaShares Nasdaq 100 ETF (ASX: NDQ). This index fund holds 100 of the largest companies that are listed on the United States tech-heavy Nasdaq stock exchange. Its largest holdings are dominated by the 'magnificent seven' – Apple, Microsoft, Amazon, Tesla, Alphabet, NVIDIA and Meta Platforms.

But you'll also find other big names like Netflix, PayPal, Palantir and Adobe here.

NDQ's largest holdings are all highly reliant on access to the most advanced semiconductors available. A 32% tariff on these semiconductors would have been a terrible cost for these stocks, but thanks to the exemption, these costs will be spared.

Next, let's check out the Global X Semiconductor ETF (ASX: SEMI). As its name implies, this ASX ETF holds a portfolio of international stocks in the semiconductor space. Its top holding is Taiwan Semiconductor Manufacturing Co, with a 10.55% weighting. But it also holds semiconductor-focused stocks like ASML, Broadcom, Qualcomm, Texas Instruments, and Advanced Micro Devices (AMD).

A semiconductor tariff would have dealt a hard blow to all of those names. But the exemption has spared this ETF from that pain. If you are a long-term believer in the future of semiconductors, then this ETF might be worth a look today.

The post Trump's semiconductor tariff exemption: Which ASX ETFs stand to benefit? appeared first on The Motley Fool Australia.

With the chip giant up more than 2,000% in the past 5 years, it's hard to argue it's been anything but a success story. 

In recent quarters, Nvidia investors have gathered at 'watch parties', eagerly waiting to see whether their investment has smashed market expectations yet again.

Last week, Nvidia hosted its annual Global Artificial Intelligence (GTC) conference. Nvidia CEO and Founder Jensen Huang showcased the latest developments in artificial intelligence (AI), including the latest in agentic and generative AI and other groundbreaking developments. 

The future certainly looks bright for investors.

A moment for the bear case

However, Nvidia's recent share price tells a different story, having fallen around 20% from its peak.

A steep sell-off is not uncommon for Nvidia. It has declined at least 20% (and even 50%!) several times since its founding in 1993. But with Nvidia now a much bigger company (at around US$3 trillion), there are legitimate concerns about how much bigger it can get. 

In its most recent quarterly earnings, investors fixated on the decline in its gross margin, which dropped 1.6% from the prior quarter to 73%. Management stressed this was due to the ramping up of its latest graphics processing unit (GPU) Blackwell. However, the market was less than convinced, with the stock sliding 8% in the next trading session.

It should come as no surprise that competition has also risen. We've already seen it with DeepSeek, a Chinese AI model that develops large language models, which caught the market by surprise earlier in the year. It's understandable that this has made some investors nervous and perhaps less inclined to go all in.

What to do?

Get a slice of Nvidia with these 3 ASX ETFs

ASX investors looking for exposure to Nvidia but want to account for competition are in luck. 

Three ASX exchange-traded funds (ETF) hold Nvidia among their top holdings, with smaller exposure to other leading tech companies. 

BetaShares Nasdaq 100 ETF (ASX: NDQ), which tracks the performance of the NASDAQ-100 Index (NASDAQ: NDX), holds Nvidia as its second-largest position. It comprises a sizeable 8.0% of the fund. Meanwhile, its largest holding is Apple (NASDAQ: AAPL), which makes up 8.9% of the fund. This ETF has a management fee of 0.48%, which is excellent value given that the fund is up more than 100% over the past five years. 

Similarly, the Global X US 100 ETF (ASX: U100) offers 8.9% exposure to Nvidia, with the other top holdings comprising Apple and Microsoft (NASDAQ: MSFT). Having only been listed for less than a year, it's harder to judge its long-term track record. However, at just 0.18%, its management fee is considerably lower than that of the BetaShares Nasdaq 100 ETF. 

Global X Semiconductor ETF (ASX: SEMI) is another option. It invests in companies that benefit from the adoption of devices powered by semiconductors. That, of course, includes Nvidia, which is why it ranks as the third largest holding, comprising 9.1% of the ETF. Other top holdings are ASML Holding NV (NASDAQ: ASML) and Taiwan Semiconductor Manufacturng Co Ltd (TPE: 2330), which provide other critical tools in the semiconductor supply chain. Having risen more than 60% over the past 5 years, this ETF has been another good choice for investors. 

Foolish takeaway

Nvidia's recent performance has left investors wondering whether or not it has peaked. 

On the one hand, CEO and Founder Jensen Huang makes a compelling case for the company's next phase of growth. However, having already reached the US$3 trillion mark (and briefly taking the crown as the world's most valuable company), is it time for investors to take some risk off the table?

That is the trillion-dollar question that may not need to be answered.

The good news for investors is that a diversified ASX ETF could deliver superior returns over simply picking a couple of market-beating winners. With Grand View Research estimating the AI industry to grow at a compound annual growth rate (CAGR) of 35.9% until 2030, there's plenty of room for more than just Nvidia to succeed.

The post Still bullish on Nvidia but want to hedge your bets? appeared first on The Motley Fool Australia.

For those who haven't had a chance to check it out, Nvidia Founder and CEO Jensen Huang showcased the latest developments in artificial intelligence (AI). This included the latest in agentic and generative AI, as well as other exciting developments.

Semiconductors, also known as semis or chips, are found in a wide range of products, including computers, smartphones and gaming hardware. 

According to Global X, the semiconductor industry is positioned for significant growth. The next generation of innovative technology, from large language models (LLMs) to robotics, will require semiconductors to power it. 

PwC expects global semiconductor revenues to grow twice the speed of global GDP, exceeding $1 trillion by 2030.

Not just Nvidia

While Nvidia (NASDAQ: NVDA) has become the poster child for AI, other companies within the AI ecosystem also offer compelling investments. 

For example, ASML Holding NV  (NASDAQ: ASML) manufactures lithography machines, which are fundamental to producing semiconductor chips. This is the most expensive step in the chip-making process, with machines going for north of US$200 million.  ASML is essentially the only player in this field, meaning companies like Nvidia and Apple (NASDAQ: AAPL) have no choice but to buy these machines to maintain their competitive position. This gives ASML incredible pricing power. 

ASML's  technology is also extremely capital intensive and complicated, and therefore difficult to replicate. This means their competitive position is rock solid.

Semiconductor exposure in a single trade

Bullish on the semiconductor industry, but can't pick a winner?

The good news for ASX investors is that they don't have to. They can gain exposure to the semiconductor industry in a single trade without having to pick a winner.

In fact, the ASX-listed exchange-traded fund (ETF) Global X Semiconductor ETF (ASX: SEMI) could be one of the hottest ASX ETFs to own this decade. 

It contains a basket of companies with exposure to the semiconductor industry. While it contains 30 holdings, it is relatively concentrated in its top five positions.

As of 28 February, 2025, these were:

• Taiwan Semiconductor Manufacturing Co Ltd (9.7%)
• Nvidia (9.5%)
• Broadcom (9.2%)
• ASML Holding NV (9.2%)
• Texas Instruments (6.0%)
  
  

Unsurprisingly, 64% of holdings are in the United States, 13% are based in Taiwan, and the remainder are dispersed around the world. 

With SEMI down around 4% over the past month following a broad tech sector sell-off, ASX investors have the chance to buy it now on sale. 

SEMI has enjoyed strong capital growth over the past 5 years, climbing nearly 65%. This follows the AI phenomenon that has captivated investors over the past few years. 

ASX investors can pick up this ETF for a management expense of 0.45%.

The post Bullish about semiconductors? Check out this ASX ETF appeared first on The Motley Fool Australia.

A great attribute of public companies is the level of transparency that must be maintained. Almost anyone can pick up an annual report, read a few key sections, and learn an enormous amount about a company's operations and current position.

The information can help make an informed decision about which companies are worth investing in. However, the downside is that it can take some time out of a busy schedule to flick through several corporate reports.

Fortunately, our Foolish writers have been busily reading and writing about ASX results throughout August. With fresh knowledge at the ready, we asked the team what their top ASX share picks are as we emerge from earnings season.

Here is what they told us.

7 top ASX shares for September 2024 (smallest to largest)

• Global X Semiconductor ETF (ASX: SEMI), $301.70 million
• Lovisa Holdings Ltd (ASX: LOV), $3.52 billion
• Super Retail Group Ltd (ASX: SUL), $4.06 billion
• NextDC Ltd (ASX: NXT), $9.87 billion
• Qantas Airways Limited (ASX: QAN), $11.19 billion
• Telstra Group Ltd (ASX: TLS), $45.41 billion
• BHP Group Ltd (ASX: BHP), $204.63 billion

(Market capitalisations as of market close 3 September 2024)

Why our Fool writers love these ASX stocks

Global X Semiconductor ETF

What it does: The Global X Semiconductor ETF is an exchange-traded fund that invests in a basket of global stocks that dominate the semiconductor industry around the world, whether that be by production or use.

By Sebastian Bowen: This ASX ETF caught my eye in August. Thanks to the pandemic, most of us would now be aware, if we weren't before, of the pervasiveness of semiconductor technology in everyday life. Name an electronic appliance, whether that be a television, phone, car, or refrigerator, and chances are it will have a semiconductor chip inside of it.

Whilst the global economy has been swamped by semiconductors over the past few decades, I think this industry isn't even close to reaching its full potential. This trend alone is one I'd be happy to invest in.

But bolstering my enthusiasm is this ETF's holdings, which consist of many of the best and most exciting companies in the world. The Global X Semiconductor ETF counts the likes of Taiwan Semiconductor Manufacturing Company, NVIDIA, Broadcom and AMD amongst its largest constituents. 

This ASX ETF has returned close to 20% per annum over the past three years (as of 30 August). While I'm not banking on that return to continue, I wouldn't be surprised if it did. 

Motley Fool contributor Sebastian Bowen owns shares of Intel Corp.

Lovisa Holdings Ltd

What it does: Lovisa is a retailer of affordable jewellery with a global store network across countries like Australia, the United States, France, and Germany.

By Tristan Harrison: The Lovisa share price has dropped more than 10% since 23 August 2024 following the FY24 result. The result included everything I wanted to see from the company for it to achieve long-term success.

It added 99 stores to its global network, reaching 900 by the end of the 2024 financial year. Revenue rose 17.1% to $698.7 million, which is a strong growth rate in my opinion. Total sales in the first eight weeks of FY25 continued to be positive, with year-over-year growth of 12.7%.

Net profit after tax (NPAT) growth of 20.9% to $82.4 million and operating cash flow growth of 27.6% to $240.4 million demonstrated the company's operating leverage, which justifies its ongoing focus on rolling out more stores worldwide.

It has recently entered several new markets, including Ireland, China, Vietnam, Ivory Coast, and the Republic of Congo. Expanding into these countries significantly expands the total addressable market and lengthens the growth runway.

As a bonus, the company increased its final dividend by 19% to 37 cents per share, showing that shareholders can receive strengthening passive income while investing significantly in store expansion, operational improvements, and its e-commerce offering. 

Motley Fool contributor Tristan Harrison owns shares of Lovisa Holdings Ltd.

Super Retail Group Ltd

What it does: Home of iconic brands such as Supercheap Auto, Rebel, BCF, and Macpac, Super Retail Group is one of Australia's largest listed companies in the retail industry. Serving customers across 759 stores, Super Retail is a mainstay to millions of people for all things automotive and outdoors. 

By Mitchell Lawler: The Super Retail Group share price is around its highest point ever, yet I'd argue there is still significant upside potential. 

Firstly, the company wields some of Australia's most recognisable retail brands. The immense brand value behind Supercheap Auto and Rebel makes it incredibly difficult for new entrants to take share. 

Secondly, Super Retail Group's FY24 results were reasonably impressive. Total sales growth of 2% and a 9% decline in statutory net profits after tax may not sound solid, but compared to the rest of the retail herd, it's quite resilient. 

I anticipate this ASX-listed retailer is primed to take a bigger slice of the market if further economic weakness plays out. 

Motley Fool contributor Mitchell Lawler does not own shares of Super Retail Group Ltd.

NextDC Ltd

What it does: NextDC develops, owns and operates data centres in Australia, New Zealand and Southeast Asia. The company provides physical centres, cooling, power, and security services. NextDC also offers optional technical and project management support. 

By Bernd Struben: Between the growth of traditional cloud computing, cryptocurrencies and the rapid advancement of AI, demand for data centres has been soaring.

And that's likely to persist, with Moody's forecasting 100% plus growth in APAC data centre capacity by 2028.

I believe NextDC is in the sweet spot here. Having completed a $1.3 billion capital raise earlier this year, NextDC is well-funded for the accelerated development and fit-out of its core data centre assets.

The NextDC share price is up 25% in 12 months. But shares have fallen since the company reported its FY 2024 results on 28 August, despite NextDC meeting the higher end of its FY 2024 guidance, with net revenue up 10% to $307.9 million

Investors appear to have reacted negatively to the company's softer-than-expected FY 2025 guidance for net revenue ranging between $340 million and $350 million.

But this is still a growth stock we're looking at here. Given the recent share price retrace, I believe this is a top stock to buy in early September.

Motley Fool contributor Bernd Struben does not own shares of NextDC Ltd.

Qantas Airways Limited

What it does: Qantas is Australia's flag carrier airline operating through the Qantas and Jetstar brands. It also has a highly profitable Qantas Loyalty business and a freight business.

By James Mickleboro: Although Qantas' shares have been on fire this year, I still believe they are undervalued. This is because I think the market is still not fully valuing the company's structurally stronger earnings following its post-COVID transformation. 

And with dividends expected to return during the new financial year for the first time since FY 2019, its shares look set to be a great source of income.

For example, Goldman Sachs believes that 30 cents per share dividends will be paid in FY 2025, FY 2026, and FY 2027. Based on the current Qantas share price of $6.87, this would mean dividend yields of 4.35%.

Goldman also sees further upside for its shares with its conviction buy rating and $8.05 price target. Combined, this will mean very attractive total returns for investors if the broker is on the money with its recommendation.

Motley Fool contributor James Mickleboro does not own shares of Qantas Airways Limited.

Telstra Group Ltd

What it does: Telstra is Australia's largest telecommunications provider. Its penetration of the mobile and telecom market is high, boasting around 23 million retail mobile customers and around 3.5 million data bundle customers. Telstra also provides critical infrastructure and bandwidth for other service providers.

By Zach Bristow: Telstra's deep customer networks and essential service lines in mobile telecommunications provide the company with recession-proof earnings, especially considering the recurring NBN payments it will receive over the coming years. 

In my view, the resilience of Telstra's profits adds to the long-term appeal of its dividend, which is also a standout for the long-term investor. 

For instance, Goldman Sachs likes Telsta's lower-risk earnings profile and prospective dividend growth. 

Goldman says that coupled with the recurring NBN payments it will receive moving forward, the telecom giant still looks undervalued. It has a price target of $4.35 apiece on Telstra, indicating a 10% potential price return. 

Goldman also expects the telco giant to pay $2.1 billion in dividends this year, or 18 cents per share, stretching to 19.5 cents per share in FY26. At the current share price, this equates to a yield of 4.5%, bringing the total shareholder return to 14.5% this financial year if Goldman's projections are correct.

Motley Fool contributor Zach Bristow does not own shares of Telstra Group Ltd.

BHP Group Ltd

What it does: BHP is the world's biggest mining company by market capitalisation. It produces iron ore, metallurgical coal, and copper and is expanding into potash.

By Bronwyn Allen: BHP is one of those quintessential blue-chip ASX 200 stocks that most long-term investors love to hold in their portfolios. But the stock price has fallen by more than 20% this year, as the iron ore price has declined due to less demand from China. However, this isn't dissuading the experts from recommending we buy BHP shares.

Goldman Sachs retained its buy rating on BHP shares after the miner released its FY24 results last month. The broker also raised its 12-month price target to $49.10, implying a potential 22% upside for investors. Goldman likes BHP's superior margins and its major, expanding exposure to copper, which will be a key commodity in the green energy transition over the coming decades.

Indeed, BHP CEO Mike Henry says they have the largest copper resources of any miner in the world. Another broker that is also bullish on BHP is Morgans. It has an add rating and a $48.30 price target.

Motley Fool contributor Bronwyn Allen owns shares of BHP Group Ltd.

The post Top ASX shares to buy in September 2024 appeared first on The Motley Fool Australia.

The US technology giant is scheduled to report its second-quarter (2Q FY25) earnings tonight on 28 August.

This should be an important event for many reasons. And it may be more so if you own any of the ASX exchange-traded funds (ETF) we are going to discuss.

Let's jump in to see what to expect!

What ASX ETFs have exposure to Nvidia stock?

The following ASX ETFs have a relatively large holding in Nvidia shares. So, if you own any of these, expect to see some unit price movements based on tonight's revelations.

Each ETF's holding in Nvidia shares as of 27 August are:

• Betashares Nasdaq 100 ETF (ASX: NDQ) has 9.1% of its assets invested in Nvidia
• Global X Semiconductor ETF (ASX: SEMI) has 10.9% of its assets invested in Nvidia
• Global X US 100 ETF (ASX: U100) has 11% of its assets invested in Nvidia

Street expectations

Three months ago, when the company reported its 1Q FY25 results, management guided for second-quarter revenue of US$28 billion. If achieved, this will indicate annual sales growth of 107%.

Nvidia has a history of beating its guidance. With this background, it is no surprise that Wall Street analysts predict that Nvidia's revenue and profits will be even better than the company had guided for.

Let's compare the street expectations to management guidance, as my colleague Beth highlighted.

Hints from previous big tech earnings

As the race to artificial intelligence (AI) heats up, big technology companies are increasing their capital investment in this area.

Nearly all big companies, including Microsoft, Alphabet, Meta, Amazon, and Tesla, emphasised the importance of AI and said they would increase spending on AI infrastructure, specifically data centres. It is no secret that a large chunk of these investments flow into Nvidia products.

Can Nvidia continue its dominance in this critical industry? All eyes will be on whether the company can continue beating heightened investor expectations.

The post 3 ASX ETFs to watch ahead of Nvidia earnings release tonight appeared first on The Motley Fool Australia.

The Global X Semiconductor ETF has been under pressure due to global market jitters and concerns about slowing demand for technology products. Additionally, there's worry that excitement about artificial intelligence (AI) has caused the prices of some AI-related shares to go up a little too much.

For investors, this sharp drop raises an important question: Is this exchange-traded fund (ETF) on the verge of a rebound?

Let's find out!

Investing in global leaders in the semiconductor industry

The Global X Semiconductor ETF aims to invest in leading companies involved in the design, manufacturing, and sale of semiconductors. These tiny chips are the backbone of modern technology, powering everything from smartphones and computers to electric vehicles (EV) and renewable energy systems.

The SEMI ASX ETF provides diversified exposure to various global semiconductor giants. This diversification helps to spread risk while allowing investors to tap into the growth potential of an industry that is crucial to the global economy.

As of 12 August, the five largest holdings of the SEMI ETF are as follows:

• Taiwan Semiconductor Manufacturing Co Ltd (TPE: 2330): 11.38% of net assets
• Broadcom Inc (NASDAQ: AVGO):10.64% of net assets
• ASML Holding (NASDAQ: ASML): 9.89% of net assets
• Nvidia Corp (NASDAQ: NVDA): 9.72% of net assets
• Advanced Micro Devices Inc (NASDAQ: AMD): 6.61% of net assets

The ETF charges management costs of 0.45% per annum. While this is higher than many other ASX ETFs, it is slightly cheaper than the Betashares Nasdaq 100 ETF (ASX: NDQ), which charges 0.48% and provides technology sector focus, similar to the SEMI ETF.

All the eyes are on Nvidia's upcoming quarterly result

Nvidia's results announcement, scheduled for 28 August, will be the next important event for investors in the semiconductor sector.

While global technology companies such as Google parent Alphabet and EV giant Tesla have reported mixed earnings so far, it's important to note that many of them emphasised their continued investment in AI infrastructure and data centres.

In addition to actual business outcomes from Nvidia, there will be many valuable comments related to the overall semiconductor and AI industry, which would help investors understand where we stand in this AI journey.

For those with an eye on the future, I think SEMI's recent dip might present a buying opportunity. The semiconductor industry is known for its cycles, and downturns often set the stage for strong recoveries. Despite short-term uncertainties, the long-term outlook for semiconductors remains strong as the AI transformation continues.

The post Down nearly 15% in a month, is this ASX ETF ready for a bounce? appeared first on The Motley Fool Australia.