Some of the babbling heads on television say the AI boom has peaked. Not a chance! In fact, not only is AI the spark for a new tech supercycle. It’s also providing a lift to unlikely parts of the economy. The Global X Artificial Intelligence & Technology ETF (AIQ) is a vehicle you can use to profit, notes Sean Brodrick, editor at Weiss Ratings Daily.
Take construction, for instance. There’s a construction boom going on in this country, and it has everything to do with artificial intelligence.
Recently, new data on US manufacturing construction came out. Not only did it hold near record highs, but more and more of it is driven by electronic and electrical manufacturing construction, thanks to the CHIPS Act & Inflation Reduction Act.
Sure, a lot of that is new semiconductor factories and whatnot. But a big part of it is the construction of new US data centers. These centers, being built to handle the tremendous demand from AI, saw construction rise to a record high of an annualized $30 billion a year.
That's up 37% from last year and 131% from just before the release of ChatGPT two years ago. And it’s not just government subsidies fueling this boom. Private US companies are plowing so much money into data centers that it now leads ALL other categories of industrial construction.
Data center investment has doubled since 2022. And it now attracts more cash than construction of theme parks, shopping centers, hospitals, schools, and even hotels. That’s just in America. Globally, investment in data centers is on track to reach $250 billion a year, according to money manager KKR.
So, how can you play this? You could buy industrial construction stocks. But those have been weighed down recently by other factors pushing around the construction business. Or you could buy individual stocks leveraged to the AI/Tech supercycle. You can find many of them in AIQ.
The ETF has a Weiss Rating of “C” and an expense ratio of 0.68%. You can see AIQ is breaking out and making higher highs. This next year could be transformative for AI and tech…and this could be a very profitable stocking stuffer if you buy it now.
Recommended Action: Buy AIQ.
