The Global X Artificial Intelligence & Technology ETF (AIQ) surged to a new 52-week high on May 4, climbing 52.9% from its low, as a historic spending cycle on AI infrastructure by the world’s largest technology companies directly fuels revenue for the fund's key holdings.
The rally is backed by staggering capital expenditure figures. Microsoft reported a Q3 FY26 capex of $30.9 billion, an 84% year-over-year increase, while Alphabet’s Q1 spending jumped 107% to $35.7 billion. Meta Platforms recently increased its full-year 2026 capex guidance to a range of $125 billion to $145 billion, explicitly citing the AI race.
This spending translates directly into growth for companies within the AIQ portfolio. Nvidia’s data center networking revenue, for example, grew 263% year-over-year in its last quarter, while Broadcom’s AI semiconductor revenue doubled to $8.4 billion, according to company filings.
For investors, the key question is how long the cycle will last. The next round of hyperscaler earnings in late July will be a critical test; a guidance cut from any two of the four major players could signal an inflection point for the entire AI supply chain that AIQ aims to capture.
Concentration Risk: A Look Inside AIQ's Holdings
Unlike many tech funds, AIQ’s construction is less dependent on U.S. mega-caps than investors might assume. The fund, which tracks the Indxx Artificial Intelligence & Big Data Index, holds about 95 positions with a significant weighting towards Asian semiconductor manufacturers. According to data from Global X, the two largest holdings are South Korean memory makers Samsung Electronics (4.58%) and SK hynix (4.53%). Taiwan Semiconductor Manufacturing Company (3.61%) is the third-largest.
This structure means U.S. giants have a smaller impact than their market cap might suggest; Nvidia constitutes just 3.02% of the fund, and Microsoft is 2.75%. The combined 12.7% exposure to Korea and Taiwan diversifies the fund away from single-stock blowups in the U.S. but introduces distinct risks tied to HBM memory pricing and regional geopolitics.
Catalysts to Watch: Treasury Yields and Export Controls
Two macroeconomic factors loom over AIQ’s near-term performance. The first is the 10-year Treasury yield, which is holding near its 12-month high of 4.6%. Persistently high yields above 4.5% compress the valuation multiples of long-duration technology stocks, creating a headwind for the fund’s growth-oriented components.
The second is geopolitical. U.S. export controls on advanced semiconductor technology to China directly impact the fund’s Asian holdings. Nvidia’s own guidance, for instance, explicitly excludes any data center compute revenue from China. Investors should monitor the Indxx index’s semi-annual rebalancing to track any shifts in the fund’s geographic exposure as the U.S. Commerce Department’s Bureau of Industry and Security continues to adjust export rules.
The Bottom Line
AIQ offers a broad-based vehicle to invest in the AI hardware and software ecosystem, but its performance is tethered to the hyperscaler capex cycle and a unique set of geographic risks. If spending guidance remains strong through July earnings and Treasury yields stay below 4.5%, the fund’s current structure appears well-positioned. However, its significant exposure to Korean and Taiwanese chipmakers remains a critical factor to watch.
This article is for informational purposes only and does not constitute investment advice.
