AI-focused ETFs outperform the S&P 500 as hyperscalers boost investments in data centers and software solutions.
The Global X Artificial Intelligence & Technology ETF has surged 19% year-to-date and 28% since April, outpacing the S&P 500’s 12% gain over the same period. The rally is driven by heavy investments in AI data centers and strong demand for AI software solutions from companies like Palantir Technologies and Anthropic.
Backlogs for AI software providers and shortages of critical components are sustaining multi-billion-dollar investments to meet compute demand. Analysts highlight Lam Research (LRCX) as a key beneficiary of this trend, positioning it as a top pick for AI exposure in 2026.
The semiconductor sector, particularly companies supplying AI infrastructure, continues to see robust growth as enterprises prioritize productivity gains through AI adoption.