Latest news with #GlobalXRobotics&ArtificialIntelligenceETF
Yahoo
4 days ago
- Business
- Yahoo
Nvidia Earnings Could Reignite Momentum in Top AI ETFs
The AI trade got a fresh boost on Thursday after semiconductor titan Nvidia Corp. (NVDA) reported strong first-quarter results that exceeded Wall Street expectations on both revenue and earnings, despite the loss of billions in China sales due to U.S. export restrictions. Revenue for the first quarter came in above forecasts, but guidance for the second quarter gave investors brief pause. The company said it expects sales of $45 billion, plus or minus 2%, which falls slightly short of the $45.4 billion consensus estimate. At first glance, that might seem like a significant miss for a company that investors have grown accustomed to beating and raising guidance. But Nvidia noted that the guidance includes an estimated $8 billion hit from chip export controls to China. Excluding that impact, the guide would have been closer to $53 billion, well above expectations. That realization likely fueled Thursday's rally, which saw Nvidia shares surge as much as 6.4% to $143.49, bringing the stock within striking distance of its all-time high of $149.43 set in January. The rebound marks a sharp turnaround from April, when shares fell below $87 intraday amid escalating trade tensions. Since then, Nvidia has helped lead the broader market recovery, as enthusiasm around artificial intelligence continues to dominate investor sentiment. While China restrictions are undoubtedly a headwind, the market is taking comfort in Nvidia's ability to grow elsewhere. Demand for its AI chips—used to power the supercomputers behind applications like ChatGPT—remains intense. Cloud giants like Microsoft Corp. (MSFT), Inc. (AMZN) and Oracle Corp. (ORCL) continue to clamor for Nvidia's chips to both run internal operations and offer AI infrastructure to customers. Nvidia is also expanding its footprint globally, striking sovereign AI deals with countries like Saudi Arabia and the UAE, where governments are investing heavily in local AI infrastructure. For ETF investors, Nvidia remains a cornerstone of many AI-themed strategies. The largest AI-themed ETF by assets under management, the $3.2 billion Global X Artificial Intelligence & Technology ETF (AIQ), holds a 2.8% position in Nvidia—a modest weighting considering the company's outsized role in the AI ecosystem. But funds like the $2.6 billion Global X Robotics & Artificial Intelligence ETF (BOTZ) offer more concentrated exposure. Nvidia currently has a 9.7% weighting in the fund. The $1.6 billion iShares AI and Innovation Tech Active ETF (BAI) is another major holder, currently allocating 9% of its portfolio to the company. As Nvidia continues to deliver, it's likely to remain a key driver of AI-related | © Copyright 2025 All rights reserved
Yahoo
12-04-2025
- Business
- Yahoo
Artificial Intelligence: Think Outside the AI Box With This Vanguard ETF
Artificial intelligence (AI) is expanding its use case throughout the economy at a rapid clip. The AI industry responsible for this expansion is something of a battleground, however, and it isn't exactly clear which companies are going to end up as winners and losers over the long makes it tough to know which stocks might be worth investing in to take advantage of the significant growth going on. One way to improve your chances is to buy a small piece of several AI companies through an AI-focused exchange-traded fund (ETF). But there's another lesser-known ETF option that is likely to benefit from AI as well. Here's why it may be worth thinking outside the box when it comes to AI and ETFs. Given how often artificial intelligence is talked about today and how long AI has been around in some form, it is hard to believe that investing in the sector has only been an option for a few years. The technology is rapidly advancing, too, so today's leader can quickly turn into a laggard. It is a very complex space, even though AI can clearly do incredible things. The problem is that buying an AI stock is highly risky given the still early stage of the industry's development. Ford Motor Company and General Motors were big winners in the combustion engine business, but a lot of competitors fell by the wayside before these two industry giants became, well, industry giants. The same thing is likely to happen in AI. One solution is to buy an AI-focused ETF. There are a bunch of choices, including Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ), ROBO Global Robotics and Automation Index ETF (NYSEMKT: ROBO), and iShares Future AI & Tech ETF (NYSEMKT: ARTY). Buying one of these ETFs is a solid option because you get a portfolio of AI-related stocks in one investment. But an AI ETF isn't the only choice you have, if you think a bit more deeply about the technology in question. While it isn't quite clear yet what companies will be the ultimate AI winners, whoever wins will need a lot of electricity to power their AI computers. And that means that electricity providers are set to benefit from a ramp-up in demand, which has been a common theme as utilities discuss earnings. For example, giant U.S. utility NextEra Energy (NYSE: NEE) recently highlighted that demand for energy was projected to increase by 22% in the United States between 2020 and 2040. Only that projection was from 2021. In 2024 the projection was raised to 38%. And it was raised again to 55% in 2025. Data centers are expected to be the largest single source of that growth. So should you run out and buy NextEra Energy? Well, not necessarily. Regulated utilities are granted monopolies in the regions they serve (in exchange they have to get their rates and investment plans approved by the government). So there isn't likely to be a single utility winner, there will be many. And some utilities will probably be better positioned to benefit than others, even though all utilities are likely to see some benefit. Just like with investing in AI, a quick solution is to simply buy a utility ETF like Vanguard Utilities ETF (NYSEMKT: VPU). This way you get a collection of utility stocks in one shot. And given that this ETF uses market cap weighting, performance will be driven by the largest and most dominant utilities. Those are likely to be the ones that best position themselves to benefit from AI's huge electricity demands. The expense ratio is a fairly modest 0.09%. Notably, NextEra is the largest holding in the ETF at just over 10% of its assets. Around 90% of the portfolio is invested in companies with electricity as a core part of their business. And the ETF's dividend yield is an attractive 2.9%, which is more than twice the level of the S&P 500 index. Essentially, Vanguard Utilities ETF is a one-stop shop when it comes to buying the vital pick-and-shovel companies that will keep AI running. What's interesting about Vanguard Utilities ETF is that, like AI, the story isn't likely to be a one-year event. Notice that the projection period that NextEra highlighted was 2040. That's still more than a decade away. If you like AI you might consider buying an AI ETF. You might also consider buying Vanguard Utilities ETF since the one thing that AI will most definitely need is more power. Before you buy stock in Vanguard World Fund - Vanguard Utilities ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard World Fund - Vanguard Utilities ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $659,306!* Now, it's worth noting Stock Advisor's total average return is 787% — a market-crushing outperformance compared to 152% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy. Artificial Intelligence: Think Outside the AI Box With This Vanguard ETF was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
12-04-2025
- Business
- Globe and Mail
Artificial Intelligence: Think Outside the AI Box With This Vanguard ETF
Artificial intelligence (AI) is expanding its use case throughout the economy at a rapid clip. The AI industry responsible for this expansion is something of a battleground, however, and it isn't exactly clear which companies are going to end up as winners and losers over the long makes it tough to know which stocks might be worth investing in to take advantage of the significant growth going on. One way to improve your chances is to buy a small piece of several AI companies through an AI-focused exchange-traded fund (ETF). But there's another lesser-known ETF option that is likely to benefit from AI as well. Here's why it may be worth thinking outside the box when it comes to AI and ETFs. The AI battle has just begun Given how often artificial intelligence is talked about today and how long AI has been around in some form, it is hard to believe that investing in the sector has only been an option for a few years. The technology is rapidly advancing, too, so today's leader can quickly turn into a laggard. It is a very complex space, even though AI can clearly do incredible things. The problem is that buying an AI stock is highly risky given the still early stage of the industry's development. Ford Motor Company and General Motors were big winners in the combustion engine business, but a lot of competitors fell by the wayside before these two industry giants became, well, industry giants. The same thing is likely to happen in AI. One solution is to buy an AI-focused ETF. There are a bunch of choices, including Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ), ROBO Global Robotics and Automation Index ETF (NYSEMKT: ROBO), and iShares Future AI & Tech ETF (NYSEMKT: ARTY). Buying one of these ETFs is a solid option because you get a portfolio of AI-related stocks in one investment. Data by YCharts. But an AI ETF isn't the only choice you have, if you think a bit more deeply about the technology in question. Vanguard Utilities ETF will meet the demand While it isn't quite clear yet what companies will be the ultimate AI winners, whoever wins will need a lot of electricity to power their AI computers. And that means that electricity providers are set to benefit from a ramp-up in demand, which has been a common theme as utilities discuss earnings. For example, giant U.S. utility NextEra Energy (NYSE: NEE) recently highlighted that demand for energy was projected to increase by 22% in the United States between 2020 and 2040. Only that projection was from 2021. In 2024 the projection was raised to 38%. And it was raised again to 55% in 2025. Data centers are expected to be the largest single source of that growth. So should you run out and buy NextEra Energy? Well, not necessarily. Regulated utilities are granted monopolies in the regions they serve (in exchange they have to get their rates and investment plans approved by the government). So there isn't likely to be a single utility winner, there will be many. And some utilities will probably be better positioned to benefit than others, even though all utilities are likely to see some benefit. Data by YCharts. Just like with investing in AI, a quick solution is to simply buy a utility ETF like Vanguard Utilities ETF (NYSEMKT: VPU). This way you get a collection of utility stocks in one shot. And given that this ETF uses market cap weighting, performance will be driven by the largest and most dominant utilities. Those are likely to be the ones that best position themselves to benefit from AI's huge electricity demands. The expense ratio is a fairly modest 0.09%. Notably, NextEra is the largest holding in the ETF at just over 10% of its assets. Around 90% of the portfolio is invested in companies with electricity as a core part of their business. And the ETF's dividend yield is an attractive 2.9%, which is more than twice the level of the S&P 500 index. Essentially, Vanguard Utilities ETF is a one-stop shop when it comes to buying the vital pick-and-shovel companies that will keep AI running. Electricity is a multiyear growth story What's interesting about Vanguard Utilities ETF is that, like AI, the story isn't likely to be a one-year event. Notice that the projection period that NextEra highlighted was 2040. That's still more than a decade away. If you like AI you might consider buying an AI ETF. You might also consider buying Vanguard Utilities ETF since the one thing that AI will most definitely need is more power. Should you invest $1,000 in Vanguard World Fund - Vanguard Utilities ETF right now? Before you buy stock in Vanguard World Fund - Vanguard Utilities ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard World Fund - Vanguard Utilities ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $496,779!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $659,306!* Now, it's worth noting Stock Advisor 's total average return is787% — a market-crushing outperformance compared to152%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 10, 2025
Yahoo
31-03-2025
- Business
- Yahoo
Intuitive Surgical, Inc. (NASDAQ:ISRG): Among the Best Robotics Stocks to Buy According to Billionaires
We recently published a list of the 10 Best Robotics Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Intuitive Surgical, Inc. (NASDAQ:ISRG) stands against the other robotics stocks held by billionaires. The robotics industry has grown modestly over the past few years. Robotic companies are growing faster than ever, driven by advancements in technology since the emergence of AI. Especially, humanoid robots are rapidly growing in the global market, driven by AI. According to Goldman Sachs' research, the total addressable market for humanoid robots is projected to cross $38 billion by 2035, a massive upgrade from its previous forecast of $6 billion in 2023. Read More: Morgan Stanley expects the humanoid robot units to reach 40,000 by 2030 and cross 63 million by 2050. Citigroup is even more bullish, anticipating a $7 trillion humanoid robot market by 2050, with 1.19 billion humanoid robots in operation. Adam Jonas from Morgan Stanley expects humanoid robots to be a multi-decade, trillion-dollar opportunity as the adoption could accelerate faster for autonomous vehicles. In 2023, the new World Robotics report noted around 4.28 million units operating in factories globally, growing by 10% compared to 2022. Annual installations surpassed half a million units for the third consecutive year. Asia remains the hot region for robots, with 70% of all newly deployed robots in 2023 installed in Asia. China, Japan, South Korea, and India are some of the largest robotics markets in the world. China leads the market, recording 276,288 industrial robots installed in 2023, representing 51% of the global installations. The U.S. has the largest robotics market in the region, accounting for 68% of installations in the Americas in 2023. The U.S. stock market has been under pressure due to tariffs as the broader market has plunged over 4.50% year-to-date. At the same time, Global X Robotics & Artificial Intelligence ETF (BOTZ) and Robo Global Robotics and Automation Index ETF (ROBO), which returned over 11% in 2024, have dropped nearly 10% and 7% year-to-date, respectively. Despite the market facing political headwinds, robotics stocks hold great promise, considering the rising demand for humanoids and automation systems. A medical technician using surgical robotics to perform minimally-invasive urologic surgery in an operating room. Our Methodology To compile our list of the best robotics stocks to buy according to billionaires, we looked for the robotics and automation companies widely held by billionaires. Data for the billionaire holders for each stock was taken from Insider Monkey's database, updated as of Q4 2024. Finally, the 10 best robotics stocks to buy were ranked in ascending order based on the billionaire investors holding stakes in them. We have also mentioned the number of hedge funds holding each stock as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). No. of Billionaire Investors: 18 No. of Hedge Fund Holders: 95 Intuitive Surgical, Inc. (NASDAQ:ISRG) is a pioneer in robotic-assisted surgery, famously known for its da Vinci Surgical System. The company's advanced robotics assist minimally invasive procedures, improving surgical precision and patient outcomes. The company has a strong global presence, with its technology widely adopted in hospitals and surgical centers. Over the years, Intuitive Surgical, Inc. (NASDAQ:ISRG) has expanded beyond the da Vinci system. In 2019, the company launched Ion Robotic Bronchoscopy, which is used in oncology to conduct minimally invasive lung biopsies. In 2024, Ion's installed base grew by 51% to more than 800 systems. Intuitive Surgical has also released Intuitive Hub, a technology platform that automatically records videos for review and collaboration during surgeries. On March 18, Baird analyst David Rescott downgraded the price target of ISRG shares from $707 to $600, maintaining an Outperform rating on the shares. Rescott lowered the price target following the change in the company's model and believes the tariff impact is already priced into the shares. The analyst also notes that the company has several levers to neutralize the headwinds. On the other side, Wells Fargo analyst Larry Biegelsen reiterated a Buy rating on the stock with a price target of $687. Biegelsen was optimistic based on Intuitive Surgical's recent FDA 510(k) clearance for its SP stapler, which is expected to boost adoption of the SP platform in the U.S. This approval is important for thoracic and colorectal procedures, where Intuitive Surgical projects increased commercial activity. Overall ISRG ranks 2nd on our list of the Robotics stocks to buy according to billionaires. While we acknowledge the potential of ISRG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
