After a brief lull, the fervor for artificial intelligence (AI) investments is back with a bang on Wall Street. This revival has been buoyed by upbeat quarterly performance of Chip biggie Micron MU and a host of news released lately.

This puts focus on AI ETFs like Global X Robotics & Artificial Intelligence ETF BOTZ, First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT and Themes Generative Artificial Intelligence ETF WISE.

Inside Micron Stock’s Performance

Micron stock jumped 16% before the bell on Thursday after the chipmaker forecast higher-than-expected revenue for the upcoming quarter. Management attributed the raised guidance to a more favorable pricing environment as well as robust demand for Micron's memory chips used in data centers to power artificial intelligence. Per management, the company is entering fiscal year 2025 with "the best competitive positioning in Micron's history."

Microsoft to Invest $1.3 Billion in Mexico for AI and Cloud Expansion

Tech giant Microsoft announced a $1.3 billion investment over the next three years to enhance its cloud computing and artificial intelligence (AI) infrastructure in Mexico. The investment will focus on improving connectivity and fostering AI adoption among small and medium-sized businesses (SMBs).

Microsoft’s initiative looks to reach 5 million people and support 30,000 SMBs within three years. Mexican companies such as breadmaker Bimbo and cement producer Cemex are already utilizing Microsoft’s AI tools to enhance their operations.

Amazon's AI Strategy Poised to Deliver a Competitive Chip Advantage

Amazon’s cloud division, AWS, has made huge investments to close the gap with the industry's first mover, Microsoft, and may now be in a favorable position. A key advantage for Amazon is its ability to use its own chips in its data centers, reducing costs compared to relying on NVIDIA's NVDA technology. Amazon expects AI to generate tens of billions of dollars for its cloud business in the years ahead.

Some analysts argue that Amazon holds an advantage over its competitors like Microsoft, which recently received a rare downgrade for over-relying on NVIDIA's AI infrastructure. As Gil Luria, managing director at D.A. Davidson, explained to Yahoo Finance, “Microsoft is so dependent on Nvidia that it’s essentially transferring wealth from its shareholders to Nvidia’s.”

NVIDIA Valuation Approaches $3 Trillion Again

NVIDIA’s chief executive Jensen Huang finished selling millions of shares in the company, worth more than $700 million, according to a regulatory filing Tuesday, boosting the NVIDIA stock’s valuation. NVIDIA briefly became the world’s most valuable company in June after jumping to a market cap of $3.33 trillion, topping Apple and Microsoft thanks to the rising demand for artificial intelligence.

Earlier this month, Nvidia lost about $280 billion in market value after shares declined 8% amid a larger tech selloff, though the company later rallied due to the Fed rate cut and hopes for more monetary easing in the coming days.

AI ETFs in Focus

With AI technology rapidly advancing and becoming increasingly integral to various industries, investors must be looking for ways to capitalize on this trend. Below, we highlight a few AI-focused ETFs for investors.

Global X Robotics & Artificial Intelligence ETF BOTZ – Up 1.8% past week (as of Sept. 25, 2024)

First Trust Nasdaq Artificial Intelligence and Robotics ETF ROBT – Down 0.5% past week

Themes Generative Artificial Intelligence ETF WISE – Up 1.8% past week

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Micron Technology, Inc. (MU) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports

First Trust NASDAQ Artificial Intelligence and Robotics ETF (ROBT): ETF Research Reports

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