Artificial intelligence (AI) stocks have spent the early part of 2026 watching their momentum cool off a bit. They collectively lost about 10% in a brief November sell-off, and they’ve been hovering back near recent highs ever since.
While worries about valuations will probably dog this sector for a while, there’s little question about the potential for AI. We’re still in the very early innings of the AI boom, and we’re likely to see this sector grow many times over within the next several years.
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Over a dozen different exchange-traded funds (ETFs) have emerged to target artificial intelligence stocks and/or quantum computing themes. While many of them seem similar on the surface, you always need to dig into the details to really determine which ones are the best.
In my opinion, the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) does one of the better jobs of portfolio construction and is able to benefit from current macro tailwinds.
This fund invests in companies throughout the AI ecosystem. It “seeks to invest in companies that potentially stand to benefit from the further development and utilization 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.”
While the final portfolio tilts heavily toward the U.S. tech sector, I appreciate that it has meaningful allocations outside of this core segment. About 28% of the fund is in nontech companies, and a full third is invested in foreign companies. That means that if there’s a rotation away from the megacap names, this ETF still has the ability to generate outperformance from other areas of the portfolio.
There are a couple of reasons I think the stocks in this fund are set to rise.
While lower interest rates are not guaranteed in 2026, the market is pricing in two cuts. If inflation remains stable and the economy can maintain a slow growth trajectory, these cuts can still happen. Lower rates would help this growth sector continue to expand and improve financials in the process.
The initial wave of AI spending was done by the megacaps. For most of them, that spend translated into positive revenue and earnings growth, fueling stock price outperformance.
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