Artificial intelligence (AI) stocks led by the megacap tech and “Magnificent Seven” names powered the market higher in 2025. As companies ramp up their AI development budgets and spend tens of billions of dollars trying to position themselves as leaders in the race, funds focused on this sector remain the ETFs to consider buying in 2026 as well.
In many cases, buying the theme instead of trying to ID individual winners is the better play. Many investors have been focusing almost entirely on companies like Nvidia and Microsoft throughout the current rally. It’s only the very early stages of 2026, but market gains already appear to be broadening out. That means the next generation of potential winners, many of which reside in these ETFs, may soon have their moment.
With the AI market expected to grow to $2.4 trillion by 2032, the boom is still in its early innings. Here are three ETFs could easily double from here.
Image source: Getty Images.
The Global X Artificial Intelligence & Technology ETF(NASDAQ: AIQ) tracks the Indxx Artificial Intelligence & Big Data Index, which targets companies involved in AI to analyze big data for either themselves or other companies or through the production of hardware.
One advantage this fund has is that it stays away from pure market cap weighting, which would overemphasize the megacap stocks. Instead, it categorizes companies by their AI exposure first, and then weights within those categories. In other words, greater focus on and exposure to the theme gives you greater weight in the portfolio.
This strategy means that only three Magnificent Seven names currently — Alphabet, Tesla, and Apple — are among its top 10 holdings. And they only account for a total weighting of about 11%. While there’s an unquestionable large-cap tilt in the portfolio, the fund’s methodology helps it stay away from the concentration issues that plague many AI and tech ETFs. That could help it outperform during a market rotation.
The downside is that its passively managed approach ties to an index that only rebalances twice a year. If the industry changes quickly, this ETF may be slower to respond. Still, it’s a great way to broaden your approach to investing in AI without relying on the big tech names that everyone has already focused on.
The iShares A.I. Innovation and Tech Active ETF(NYSEMKT: BAI) takes the actively managed approach that may be better suited for this space. It invests in companies of all sizes from all around the world that meet minimum revenue and earnings requirements and are positioned to be leaders in the AI race.
This fund does, however, have more of a Magnificent Seven concentration issue. Its top five holdings are Nvidia, Broadcom, Alphabet, Microsoft, and Taiwan SemiconductorManufacturing. Those stocks alone account for approximately 28% of the portfolio.
With more than $8 billion in assets under management (AUM), the iShares ETF is one of the biggest and most liquid in this space. It’s backed by a deep research department at BlackRock, and you get active management at a lower expense ratio than that of the Global X ETF. That could prove to be a big advantage in this rapidly evolving industry.
The Defiance Quantum ETF(NASDAQ: QTUM) is linked to the BlueStar Machine Learning and Quantum Computing Index. It targets companies that are actively engaged in advanced quantum computing, the development of superconducting materials, algorithms built for quantum computers, equipment and materials used specifically in the manufacturing of quantum computers, and advanced computing hardware.
If generative AI is the short-term future of technology, quantum computing could be considered the longer-term revolution. When fully harnessed, the technology could generate computing power far beyond that of traditional computers. That would allow rapid advances in technology, healthcare, communications, robotics, and many other areas of the global economy.
But this technology is in its very early stages and a long way off from mass adoption. That doesn’t mean it doesn’t have a lot of potential as an investment. Part of its appeal is that we still don’t know how big quantum computing can get. A lot of investors might want to take that ride to capture big return potential.
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David Dierking has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends BlackRock and Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
3 AI ETFs Poised for 100% Surge as Tech Revolution Accelerates was originally published by The Motley Fool
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