AIQ’s run challenges the idea that Nvidia is the only AI trade

Nvidia has become the shorthand for “the AI trade,” a status reinforced by years of intense demand for its data-center processors and networking products. But a recent market report highlights a counterpoint: investors who were willing to buy a diversified basket of artificial intelligence and technology stocks instead of Nvidia alone may have fared better over the last 12 months.

According to the report, the Global X Artificial Intelligence & Technology ETF (ticker: AIQ) delivered a 52% return over the past year. The article also states that AIQ beat the Nasdaq during the same period, positioning the fund as an example of how broader exposure to AI-adjacent companies can outperform even in a market dominated by Nvidia headlines.

The Global X AIQ approach is to hold a range of companies tied to artificial intelligence and technology themes rather than centering on a single provider. That matters because, in a fast-moving sector, chipmakers can experience sharp swings tied to major customer capex cycles, product transitions, and competition, while other beneficiaries may move on different timelines, including software, cloud infrastructure, semiconductors beyond GPUs, and data infrastructure.

Nvidia itself remains a core name in the AI buildout. Still, the argument in the report is not that Nvidia is unimportant, but that “owning the AI stocks you can’t” by buying a single stock is not always the most efficient way to express a view on the sector. In practice, diversified funds can spread risk across companies that play distinct roles across the AI supply chain, from enabling hardware to services and applications.

Market observers also point out that AI leadership narratives tend to compress quickly into concentrated positions. When that happens, performance can be dominated by one company’s results, guidance, and product momentum. An ETF can reduce that concentration risk, though it also means investors do not get a direct, single-name turbo effect if one company’s upside accelerates dramatically.

The report does not provide details on AIQ’s top holdings, weightings, or what portion of the 52% return came from Nvidia versus other companies. It also does not break down whether the fund’s performance was driven more by stock selection, reweighting as companies changed in the index methodology, or broader market multiple expansion tied to AI expectations.

For Nvidia, the practical implication is that investors may increasingly view the company as one component of a wider AI ecosystem rather than the only liquid entry point. For the ETF universe, the implication is that AI-focused thematic products can compete for flows even when the market attention is largely fixed on a single mega-cap.

What to watch next is whether the AIQ outperformance persists, and whether any narrowing or widening in AIQ’s composition changes the return profile. If Nvidia continues to lead operationally while other AI-linked names catch up, the “basket beats the benchmark” story could continue. If performance becomes more narrowly tied to Nvidia-specific catalysts, the relative advantage of the diversified approach could shrink. Either way, investors will likely keep comparing single-stock momentum with thematic diversification as new AI infrastructure demand indicates emerge.