Shares in Alphabet fell on Wednesday after a downbeat outlook for its cloud computing business, but upon closer inspection, investors may find some encouraging signs regarding artificial intelligence (AI). The company’s significant investment in AI initiatives could be beneficial to exchange-traded funds (ETFs) like the Invesco QQQ Trust and the Invesco NASDAQ 100 ETF, which hold AI stocks.
Alphabet has increased its spending on generative artificial-intelligence projects, with capital expenditures reaching $14.28 billion for the quarter, exceeding Wall Street’s estimate of $13.26 billion. This upward trend is expected to continue, as Alphabet is forecasted to spend a combined $228 billion on AI by 2025, alongside Meta and Microsoft.
The increased spending on AI could also benefit other companies in the QQQ and QQQM ETFs, such as Chinese startups like DeepSeek, which recently introduced open-source AI models competitive with OpenAI’s at a lower price. This development could lead to more justification for the significant investments made by tech giants into AI infrastructure.
Analysts see the elevated spending on AI as a catalyst for growth in cloud computing and equities, including those held by QQQ and QQQM. As AI adoption increases, investors may find opportunities in these ETFs.
Source: https://etfdb.com/etf-education-channel/ai-spending-may-reach-heightened-pace-2025