Home etftrends.com AI and Semiconductors: A Virtuous Circle in the Making?

AI and Semiconductors: A Virtuous Circle in the Making?

Semiconductors: one of the hottest tech darlings of the last few years, the computer chips have contributed significantly to the overall stock market. They’ve done so well, in fact, that they’ve helped push NVIDIA (NVDA) into the so-called “Magnificent Seven.” Squeezing out more power from these chips, however, may pose a challenge. That’s a place where AI and semiconductors could come together in a virtuous circle, a feedback loop benefitting both.

See more: The IMF’s AI Report: Overly Pessimistic?

AI has already boosted the U.S. economy significantly over the last year, particularly by improving the outlook of the big tech firms. The potential productivity bonuses from AI had already enticed many market watchers. In the case of AI and semiconductors, however, AI could offer firms a tool that doesn’t just boost worker productivity, but helps advance the latter technology itself.

Indeed, should engineers lean on generative AI programs to help design new and more efficient chips, that would not benefit only the chips, but also the AI programs themselves. AI developers would receive significant data about how generative AI can be used and how it can be improved. And turn, better and better chips would enable more and more powerful generative AI programs.

Such a virtuous circle benefitting both AI and semiconductors could provide AI investing strategies a big boost. A strategy like THNQ, the ROBO Global Artificial Intelligence ETF could provide one intriguing route into that feedback loop. The strategy tracks the ROBO Global Artificial Intelligence Index, looking for publicly-traded companies that derive significant revenue from AI.

In doing so, it ranks its potential investments on an AI revenue range of 1 to 100. Charging 68 basis points (bps), it hit its three-year mark last year, too. For investors looking to play an ongoing AI and semiconductors investing theme, keep an eye on THNQ.

For more news, information, and analysis, visit the Artificial Intelligence Channel.

VettaFi LLC (“VettaFi”) is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.

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