An Actively Managed AI ETF Put 18% Into Two Chip Giants Just Ahead of Massive Infrastructure Buildout

"With $8 billion in assets and a 0.55% expense ratio, BAI takes a full-stack approach to AI exposure. Nearly 60% sits in information technology, led by NVIDIA (NASDAQ:NVDA) at 9.5% and Broadcom (NASDAQ:AVGO) at 8.8%. The next tier includes hyperscalers Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Meta (NASDAQ:META), plus software plays like Snowflake (NYSE:SNOW) and Palantir (NYSE:PLTR). It's a who's-who of AI infrastructure, from chips to cloud to enterprise software."

"The single macro factor that matters most: hyperscaler capital expenditure. Goldman Sachs (NYSE:GS) Research projects AI companies will spend over $500 billion on infrastructure in 2026, up from roughly $400 billion in 2025. That spending flows directly to BAI's top holdings. Microsoft, Google, Meta, and Amazon (NASDAQ:AMZN) are building data centers, buying NVIDIA GPUs, and deploying custom silicon at unprecedented scale. When Azure grows 40% year-over-year or Google Cloud expands 34%, that revenue translates into orders for semiconductors, networking gear, and software platforms."

"Watch quarterly earnings from the hyperscalers, particularly their capex guidance. Microsoft, Alphabet, and Meta report fiscal results in January, April, July, and October. Any upward revision to infrastructure spending signals sustained demand for BAI's semiconductor and hardware holdings. If capex growth slows below 25%, the valuation premium on AI infrastructure stocks compresses quickly."

BAI launched in October 2024 with $8 billion in assets and a 0.55% expense ratio as an actively managed ETF targeting the full AI infrastructure stack. The portfolio concentrates nearly 60% in information technology, led by NVIDIA (9.5%) and Broadcom (8.8%), with hyperscalers Microsoft, Alphabet, Meta, and software names Snowflake and Palantir among top holdings. Goldman Sachs projects AI infrastructure spending exceeding $500 billion in 2026, driving demand for semiconductors, networking gear, and enterprise software. Managers run about 56% turnover to rotate exposure, creating concentration and valuation risk if hyperscaler capex growth decelerates below 25%.

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