This ETF Could Be a Great Contrarian Artificial Intelligence (AI) Buy Right Now
This ETF Could Be a Great Contrarian Artificial Intelligence (AI) Buy Right Now
Publish Date: 2026-01-24 19:25:00
Source Domain: www.nasdaq.com
- AI Productivity & Cost Savings: AI is seen as a major tool for businesses to unlock productivity gains and reduce overhead costs.
- Impact on Software Sector: Many investors believe businesses will replace multiple software packages with a more powerful AI tool, causing software stock prices to drop.
- IGV ETF Performance: The iShares Expanded Tech-Software Sector ETF has dropped 18% from its high, but its revenue growth remains strong, with a positive outlook on AI.
- Major Holdings: The ETF’s top holdings include AI-driven companies like Microsoft, Palantir, and Oracle, alongside traditional software firms facing challenges due to AI concerns.
- AI Integration Benefits: Software companies integrating AI features are becoming more competitive and are experiencing revenue growth.
- Invitation for Investors: Despite current concerns, the ETF may be a good investment opportunity as it includes high-value companies with strong financial performance.
- Alternative Investment Recommendations: The Motley Fool Stock Advisor has recommended other stocks potentially offering higher returns, though IGV is not among the top picks.
- Historical Performance: The Stock Advisor service has historically shown a market-crushing outperformance compared to the S&P 500.
