Why Global X Artificial Intelligence and Technology ETF (AIQ) Jumped 31% in 2025 — and What It Could Mean for 2026

Global X Artificial Intelligence and Technology ETF (AIQ) delivered a standout year in 2025, rising roughly in the low-30% range and staying ahead of the Nasdaq for most of the ride.

This article rewrites and expands the key ideas behind that performance in plain English. We’ll break down what AIQ owns, why it held up better than many people expected, and what to watch next if you’re thinking about AI-themed investing in 2026.

Quick Snapshot: What Happened to AIQ in 2025?

In 2025, AI-focused stocks broadly rallied, and AI-themed exchange-traded funds (ETFs) benefited. AIQ—an ETF built around artificial intelligence, big data, and the technology supply chain—ended the year up around 32% (often summarized as “about 31%”).

What’s notable is not only the gain, but also how it happened: AIQ tracked the general movement of the Nasdaq Composite, yet it stayed ahead for most of the year rather than needing a last-minute sprint.

What Is AIQ, and Why Do Investors Pay Attention to It?

AIQ is the Global X Artificial Intelligence and Technology ETF. Instead of buying one “hot” AI company, investors use ETFs like AIQ to get a basket of stocks tied to the AI ecosystem.

AIQ’s Core Idea: Own the AI “System,” Not Just One Stock

AI isn’t just one company or one product. It’s an entire chain:

• Chips and memory that power data centers and devices
• Foundries that manufacture advanced semiconductors
• Platforms and cloud businesses that train and run AI models
• Enterprise software and data tools that put AI into daily work

AIQ aims to capture that whole picture by holding large, well-known tech names and key “picks-and-shovels” companies in semiconductors and data infrastructure.

Examples of Big Holdings (and Why They Matter)

AIQ includes major technology players such as Samsung, Alphabet, Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSMC), and Alibaba.

That mix matters because AI growth doesn’t come from a single lane. For example:

• TSMC benefits when demand rises for cutting-edge chips.
• Samsung and memory makers benefit when AI data centers need more high-performance memory.
• Alphabet benefits when AI strengthens cloud services and software platforms.

The “Secret Sauce”: Diversification Without Losing the AI Theme

A lot of investors hear “AI ETF” and assume it must be wild and risky. AIQ did well partly because it didn’t behave like a one-stock bet.

1) AIQ Spreads Risk Across Many Holdings

AIQ held 86 different stocks, which helps reduce the damage if any single company has a bad month.

Even the largest position wasn’t overpowering. Samsung was the biggest holding at about 5.25% of total assets—meaning no single company completely controlled the ETF’s results.

2) Heavy Tech Exposure — But Not All the Same Kind of Tech

Roughly 72% of AIQ was in information technology stocks.

That’s important, because “information technology” is a wide world. It can include:

• Chip designers
• Chip manufacturers
• Memory and storage companies
• Software and platform businesses

When AI spending rises, that money can flow through multiple layers—so AIQ can benefit in more than one way.

A Big Difference vs. Many U.S.-Only Index Funds: International Exposure

One standout feature is AIQ’s stronger international mix compared with many U.S.-heavy funds that track the Nasdaq or S&P 500.

Why International Exposure Helped

In AI, some of the most important companies are outside the United States—especially in semiconductors and memory. AIQ’s top holdings included multiple non-U.S. names such as Samsung, TSMC, and Alibaba.

That matters because AI infrastructure is global. Data centers may be built in the U.S., but chips and memory supply chains often stretch across Asia and other regions.

Memory Chips: A Key Theme Inside AIQ

AI workloads require enormous amounts of fast memory and storage. AIQ had meaningful exposure to major memory players like Samsung, Micron, and SK Hynix—and SK Hynix was listed around #7 among holdings in the discussion.

When memory pricing improves, or when AI demand increases the need for high-end memory, these companies can get a boost—helping the ETF.

Why AIQ Stayed Strong Even When Markets Got Shaky

In 2025, markets didn’t move in a straight line. Yet AIQ managed to stay ahead of the Nasdaq even around periods when stocks were sinking heading into a major tariff-related announcement referenced as “Liberation Day” in the coverage.

Stability Through Breadth

Here’s the simple idea: if an ETF has many holdings, and none are too big, then one scary headline doesn’t automatically crush the whole fund. AIQ’s structure helped it avoid the “single point of failure” problem.

AI Demand Is Not a One-Quarter Trend

Another reason: many businesses have been treating AI like a multi-year build-out. Even when markets get nervous, companies may still keep investing in:

• Data centers
• Cloud capacity
• Chip supply
• AI software tools

When investment is tied to long-term strategy, it can be harder to stop suddenly—which may support AI-related revenue streams across the sector.

What Index Does AIQ Track?

AIQ attempts to track the Indxx Artificial Intelligence & Big Data Index.

That matters because AIQ is rules-based. It’s not just someone’s “favorite AI stocks.” Instead, it follows an index approach that typically aims to keep the theme consistent over time.

What to Expect in 2026: Momentum, Valuations, and Key Watch Items

Early in 2026, AIQ continued showing strength. Through January 16, 2026, it was up about 3% for the year.

1) The Momentum Factor

Markets often carry trends forward. If AI spending stays strong, ETFs like AIQ can continue to benefit because they own many of the companies that supply the “muscle and bones” of AI—chips, memory, and platforms.

2) Valuations: “Reasonable” Can Matter

Even after strong gains, the discussion highlighted that several top holdings still traded at what were described as reasonable valuations.

Why that’s important: if a fund is built entirely from extremely expensive stocks, it can be more fragile. When expectations are too high, even good news may not be enough. “Reasonable” valuations can provide a bit more cushion—though nothing removes risk completely.

3) The Biggest Risks to Watch

AIQ can still drop, sometimes sharply, especially if the broader tech market falls. Here are practical risk categories to watch:

• Macro shocks (interest rates, inflation surprises, recessions)
• Trade and regulation (tariffs, export controls, cross-border rules)
• Semiconductor cycles (chip demand can boom and cool)
• AI hype risk (some projects may disappoint, even if the tech is real)

Why Some Investors Prefer AIQ Over Picking Individual AI Stocks

Buying a single AI stock can feel exciting, but it can also be stressful. AIQ offers a “middle path”:

Benefits of Using an AI ETF Like AIQ

• Built-in diversification across dozens of holdings
• Exposure to global winners, not only U.S. companies
• Automatic rebalancing as the index changes (rules-based approach)

Possible Downsides

• You won’t “win big” from one superstar stock the way you might if you picked the perfect company early.
• Some holdings may lag even while the theme is strong.
• Theme drift risk: index rules can include companies you personally wouldn’t call “pure AI.”

A Simple Comparison Mindset: AIQ vs. Nasdaq

AIQ moved similarly to the Nasdaq Composite in 2025, but stayed ahead for most of the year—suggesting the AI and semiconductor mix added extra lift.

Think of it like two runners:

• The Nasdaq is the runner with lots of tech exposure across many industries.
• AIQ is the runner carrying an extra “AI gear bag”—more chips, memory, and AI-linked names.

When AI is a main storyline of the market, that extra gear can help.

Practical Ways to Use AIQ in a Portfolio (Non-Scary, Real-World Examples)

Not financial advice—just common ways people think about ETFs like AIQ:

1) As a “Theme Slice”

Some investors keep most money in broad funds, then add a smaller slice to a theme like AI. AIQ can fill that role because it’s diversified but still focused.

2) As a Semiconductor-and-Platforms Blend

If you believe AI growth will continue, but you don’t want to guess which single chipmaker or platform wins, AIQ provides a blended approach with exposure to multiple links in the chain.

3) As an International Tech Booster

Many people already hold U.S.-heavy index funds. AIQ’s larger international footprint can add diversification across regions, especially in Asia’s semiconductor ecosystem.

Frequently Asked Questions (FAQ)

1) What does AIQ stand for?

AIQ is the ticker symbol for the Global X Artificial Intelligence and Technology ETF, an ETF designed to provide broad exposure to artificial intelligence and related technologies.

2) How much did AIQ rise in 2025?

AIQ finished 2025 up roughly 32% (often described as about 31%), according to referenced market data in the coverage.

3) Is AIQ a “pure AI” ETF?

It’s an AI-themed ETF, but it includes a wide range of companies supporting AI—like semiconductors, memory, platforms, and big-data businesses—rather than only companies that sell “AI software” directly.

4) How diversified is AIQ?

It had 86 holdings in the discussion, which helps reduce reliance on any single stock.

5) Why does international exposure matter for an AI ETF?

AI hardware supply chains are global. Important chip and memory companies are based outside the U.S., and AIQ’s top holdings included major non-U.S. names like Samsung and TSMC (and also Alibaba among the top).

6) What should investors watch most closely in 2026?

Key watch items include: ongoing AI spending trends, semiconductor and memory cycles, interest-rate and economic shifts, and trade or regulatory changes that affect global tech supply chains. The fund also started 2026 up around 3% through Jan. 16 in the discussion, suggesting momentum was still present early in the year.

Conclusion: Why AIQ’s 2025 Win Wasn’t “Magic”—It Was Structure + Trend

AIQ’s strong 2025 performance came from a powerful combination: the market’s ongoing AI wave, plus an ETF structure that spread risk across many holdings while leaning into the parts of the tech world that benefit most from AI build-outs—especially chips and memory.

If AI investment continues in 2026, AIQ could remain a useful “one-ticket” way to get broad exposure to the theme—without making your entire outcome depend on one company.

Source reference (external): This rewrite is based on reporting published by The Motley Fool on January 18, 2026.

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