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The Fund invests at least 80% of its total assets in the securities of the Indxx Artificial Intelligence & Big Data Index (Underlying Index). The Underlying Index is designed to track the performance of companies involved in the development and utilization of artificial intelligence (AI) and big data. The Fund's 80% investment policy is non-fundamental and requires 60 days prior written notice to shareholders before it can be changed. The Fund may lend securities representing up to one-third of the value of the Funds total assets (including the value of the collateral received). The fund is non-diversified.

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Arelis Agosto, director of Product Research and Strategy at Global X ETFs, sat down with Benzinga&#8217;s Dan Leach at Future Proof CityWide Miami in March to discuss the most recent <a href="https://www.benzinga.com/etfs">trends in exchange-traded funds</a>.
Global X ETFs is a New York-based provider of ETFs with billions in managed assets.
Agosto noted that the most prevalent themes in ETFs currently center around artificial intelligence and its infrastructure, reflected by the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) and Global X Data Center &amp; Digital Infrastructure ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DTCR#NASDAQ">DTCR</a>).
&#8220;When we think about the broader demand and supply for data centers in the U.S., when we look at occupancy rates, they&#8217;re really high right now. What we&#8217;re seeing is that supply needs to catch up,&#8221; Agosto said. &#8220;This broader artificial intelligence landscape is not going away, and even conversations as to how newer technologies could take less space or demand from data centers isn&#8217;t something we&#8217;re super concerned about.&#8221;
Investors are reportedly also interested in investing in broader infrastructure plays given the perceived bipartisan support for infrastructure funding in the U.S. The Global X US Infrastructure Development ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/PAVE#BATS">PAVE</a>) tracks domestic infrastructure companies.
Agosto also noted the most important trends to look at several years into the future for Global X&#8217;s ETFs.
&#8220;When we think about thematic at Global X, we are targeting structural changes in the world as we know it,&#8221; Agosto said. When we think about artificial intelligence, it&#8217;s a little more mature because we are already seeing it very tangibly. We might have themes that are a little bit early on the curve of adoption, such as genomics or humanoids, which are a little bit earlier in those phases. We believe that the trends we already see materialize today will feed into those in earlier stages of maturity.&#8221;
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Artificial Intelligence, Data Centers The Top ETF Themes In 2025 Says Global X ETFs

Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is moving ahead with its most ambitious health initiative to date, aiming to elevate its Health app with AI capabilities that mimic real doctors. 
Bloomberg&#8217;s Mark Gurman, in his <a href="https://www.bloomberg.com/news/newsletters/2025-03-30/apple-readies-biggest-push-into-health-yet-with-revamped-app-ai-doctor-service-m8vl97k2?srnd=undefined&amp;sref=TBDibEcD">latest </a>weekly &#8220;Power On&#8221;, has said that the tech giant is also gearing up to launch an M5-powered iPad Pro later this year, and has announced key organizational changes and its next developers conference.
As part of its moon-shot health goals, Apple has been working on Project Mulberry, a major upgrade to its Health app, featuring an AI-driven coach that can deliver customized health insights using user data. This app overhaul will be accompanied by a virtual health guide trained on inputs from internal and external medical professionals, including specialists in sleep, nutrition, and cardiology. The service, potentially branded as "Health+," is expected to debut with iOS 19.4 next year.
The app will integrate video explainers from physicians, track nutrition in detail, and even use iPhone cameras to assess users' exercise form. Apple is also constructing a facility near Oakland, California, where doctors will film educational content for the platform.
Also Read: <a href="https://www.benzinga.com/tech/25/03/44450408/apple-explores-ai-wearables-with-camera-integrated-smartwatches">Apple Explores AI Wearables With Camera-Integrated Smartwatches</a>
On the hardware front, Apple is testing four new versions of the iPad Pro featuring the M5 chip. These models, now in advanced testing, are expected to launch in the second half of 2025. The company is also working on an M6 version with its own modem chips, which could be ready by 2027. 
Meanwhile, M5 upgrades are coming to MacBook Pro and MacBook Air as well, likely following the same annual release cadence as their M4 predecessors.
Apple quietly announced its Worldwide Developers Conference (WWDC) 2025 for June 9–13. The mostly virtual event will feature in-person segments for the keynote and State of the Union. This year's announcement carried a more restrained tone, contrasting with previous years' bold messaging.
The tech giant continues to diversify its business while rivals such as Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) make parallel moves in AI and health. For investors tracking broader trends, the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) and iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) remain key barometers of sector momentum.
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Wall Street&#8217;s tech giants are pouring billions into artificial intelligence infrastructure, driving a massive semiconductor revenue boom, but beyond Silicon Valley's elite, most companies are still fumbling through the early stages of <a href="https://www.benzinga.com/topic/expert-ideas">adoption, according to Goldman Sachs. </a>
In a note shared Monday, Goldman Sachs analysts Sarah Dong and Joseph Briggs said that AI-related investments in chips and hardware are set to add $305 billion in revenue by the end of 2025. That includes a $200-billion revenue growth for semiconductor firms, plus a $105-billion boost for other hardware enablers.
Despite the flood of investments, AI isn't moving the needle in GDP figures. Goldman said that's because the Bureau of Economic Analysis classifies semiconductors and cloud services as intermediate inputs, which don't directly show up in growth metrics.
<h3 class="wp-block-heading">AI Broader Adoption Still Limited</h3>
Only 7.4% of U.S. firms currently use AI in their operations, according to Goldman Sachs, up modestly from 6.1% in the fourth quarter of 2024. 
Large companies—defined as those with over 250 employees—are at the forefront of this trend. Currently, 12% are already using AI, and that number is expected to rise to 17% by mid-year.
&#8220;We continue to see higher adoption rates among subsectors with greater exposure of work tasks to AI automation,&#8221; the analysts said.
The biggest growth is expected in computing and electronics manufacturing, where work tasks are more likely to be automated by AI. Other fast-moving sectors include web search, broadcasting, and publishing.
Goldman added that while new AI tools are being developed and tested, very few businesses have been able to measure clear productivity gains or returns on investment.
<h3 class="wp-block-heading">Labor Market Impact Still Small, Productivity Gains Are Large In Selective Areas</h3>
Fears of AI-triggered mass layoffs haven't played out. Goldman said there have been no explicit mentions of AI in recent job cut announcements. 
While AI-related roles now account for 23% of IT job postings, they account for just 1.3% of total job listings.
&#8220;We continue to see large&nbsp;impacts on labor productivity&nbsp;in the limited areas where generative AI has been deployed,&#8221; Goldman Sachs wrote.
The Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) is flat in 2025, after rising 24% in 2024 and 55% in 2023.
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) has fallen 5% year to date, after notching a 85% cumulative gain over the last two years. 
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Goldman Sachs Predicts $305 Billion AI Windfall While Adoption Remains Slow

The future of telecommunications is now and investors are paying attention. With NVIDIA&#8217;s recent foray into AI-native 6G networks, the world is changing fast and there are huge opportunities for <a href="https://www.benzinga.com/etfs">telecom, AI, and semiconductor ETFs</a>.
Defiance ETFs CEO Sylvia Jablonski thinks this revolution is only just starting. &#8220;Telecom companies that want to stay competitive will need to invest in AI-powered networks, partner with AI tech leaders and upgrade to cutting-edge semiconductor technology. That's exactly why we built the Defiance Connective Technologies ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIXG#NASDAQ">SIXG</a>) to capture this AI-driven telecom revolution,&#8221; she told Benzinga.
Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) new <a href="https://nvidianews.nvidia.com/news/nvidia-and-telecom-industry-leaders-to-develop-ai-native-wireless-networks-for-6g">deals </a>with T-Mobile Us Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), MITRE, Cisco Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), ODC, and Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) that were announced in the GTC 2025 are a significant step forward in AI-powered telecommunications. Nvidia is taking the lead in the deployment of AI in wireless network hardware, software and infrastructure, paving the way for new-gen connectivity.
For investors, this transition offers attractive opportunities. The need for AI-driven networking chips, cloud computing infrastructure, telecom software and cybersecurity is likely going to boom. Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Amazon.com Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) AWS, Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google Cloud, Oracle Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>), Cisco Systems, Ericsson and Nokia Oyj (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOK#NYSE">NOK</a>) are likely to gain. Naturally, ETFs holding stocks of these companies are seeing an upside potential, too.
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<h1 class="wp-block-heading">ETFs That Stand To Gain</h1>
Jablonski points out that ETFs such as Defiance Connective Technologies provide exposure to these leaders, enabling investors to be part of the revolution in telecom networks.
Outside of that ETF, a number of other ETFs stand to gain from Nvidia&#8217;s and the telecom sector&#8217;s AI-led transformation:
• Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) targets AI-led innovation across sectors, such as cloud computing and telecommunications. 
• VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) contains top semiconductor players such as Nvidia, Broadcom and Qualcomm that form the backbone of AI-driven networking. 
• iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) offers exposure to large telecom companies such as Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) and T-Mobile. 
• ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) contains firms utilizing AI-based connectivity for automation and future mobility. 
• First Trust Nasdaq Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>) also covers cybersecurity companies such as Palo Alto Networks Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and CrowdStrike Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), which will be instrumental in protecting <a href="https://www.crowdstrike.com/platform/">AI-native</a> 6G <a href="https://www.paloaltonetworks.com/blog/2024/11/a-security-first-approach-to-6g/#:~:text=Next%20Steps,development%20and%20deployment%20of%206G.">networks</a>.
The actual impact of AI-enabled 6G is much greater than the telecommunications sector. From health and finance to manufacturing and self-driving cars, AI-enhanced networks will bring efficiency, security and performance to many different industries. 
Jablonski noted, &#8220;AI-integrated telecom networks will boost productivity and connectivity across several industries: healthcare – enabling remote surgeries, real-time diagnostics and telemedicine; finance, strengthening cybersecurity for transactions and real-time market analysis; manufacturing, enhancing automation and predictive maintenance and autonomous vehicles, powering AI-native Vehicle-to-Everything (V2X) communication.&#8221;
The financial benefit won&#8217;t directly touch consumers&#8217; wallets. &#8220;In the short term, telecom companies will likely use AI-driven efficiency to increase their profits as they recover infrastructure investment costs. Over time, as AI optimizes network operations, consumers could see more competitive pricing and improved services — similar to how cloud services have evolved.&#8221; 
In the long run, with AI optimizing network operations, customers may experience more competitive rates and better services.
But, AI-driven networks may create a divide between telecom and tech giants. &#8220;Companies like AWS, Google Cloud and Microsoft Azure are expanding into telecom with AI-driven cloud services. Traditional telecom providers that fail to adapt may struggle to compete with these tech-driven companies,&#8221; she noted.
Nvidia&#8217;s AI-native 6G project is a game-changer and the investment environment is changing rapidly. With partnerships that range from telecom behemoths to cloud and cybersecurity companies, the argument for ETFs such as Defiance Connective Technologies ETF and Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>) has never been more compelling. As AI-powered networks redefine connectivity, investors can seize the opportunity to ride the future of telecommunications technology.
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EXCLUSIVE: Why Defiance ETF CEO Sees Big Gains Ahead During Nvidia's 6G Revolution

Senior Advisor to <a href="https://www.benzinga.com/topic/donald-trump">President Donald Trump</a>, Elon Musk, made headline-grabbing statements on The Joe Rogan Experience on Friday, describing the U.S. as a ‘poorly managed business.' The Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO criticized government policies and cautioned that <a href="https://www.benzinga.com/topic/artificial-intelligence">AI is advancing</a> at an unprecedented pace.
From calling Social Security a &#8220;Ponzi scheme&#8221; to discussing Fort Knox's gold reserves and media influence, Musk's unfiltered insights from the <a href="https://www.youtube.com/watch?v=sSOxPJD-VNo&amp;t=10092s">interview </a>raise concerns—but investors may want to take note.
<h2 class="wp-block-heading">Challenge Of National Debt</h2>
Musk argued that America's $1 trillion annual interest payments on its national debt are unsustainable. He compared the system to a business that relies heavily on debt while discouraging innovation. He also warned that excessive money printing may provide short-term relief but could lead to long-term economic consequences.
For investors concerned about inflation, some may look to hedging strategies. Gold ETFs, such as SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), have seen increased interest amid economic uncertainty.
Read Also: <a href="https://www.benzinga.com/25/03/44069535/anthropic-ceo-dario-amodei-pushes-for-stronger-us-ai-safeguards-saying-autocracies-like-china-and-russia-could-use-ai-to-expand-their-power">Jeff Bezos-Backed Anthropic Pushes For Stronger US AI Safeguards, Saying Autocracies Like China, Russia Could Use AI To Expand Their Power: &#8216;Some Very Dark Possbilities&#8217;</a>
<h2 class="wp-block-heading">AI Is Moving Faster Than You Think</h2>
Musk said that automation is advancing at an exponential rate, and the companies leading the AI race will dominate the future economy. From self-driving cars to automated customer service and even AI-driven medical diagnoses, entire industries will be disrupted.
The Tesla CEO believes that even traditionally "safe" white-collar jobs—lawyers, accountants, and analysts—could be replaced faster than expected.
The key question is who stands to gain. AI-driven companies like Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) are already seeing explosive growth, with ETFs like the Global X Robotics &amp; Artificial Intelligence ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NYSE">BOTZ</a>) and the Global X Artificial Intelligence &amp; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NYSE">AIQ</a>) offering exposure to the AI revolution.
But Musk has also warned that regulation is lagging. If AI advances without oversight, it could become an unpredictable force, reshaping societies in ways that remain uncertain.
<h2 class="wp-block-heading">Wealth, Power, and Systemic Concerns</h2>
Musk has criticized what he refers to as "The Matrix," suggesting that societal structures keep people distracted while wealth and power concentrate at the top. He pointed to repeated financial mismanagement in government agencies, noting that some fail audits without facing significant consequences. 
As an example, he cited a case where an agency received $12 billion for submarines, yet no submarines were built, raising concerns about accountability and oversight.
Additionally, he compared the rise of speculative investments, such as meme coins, to legalized gambling. His remarks highlight broader debates about government efficiency, financial regulation, <a href="https://www.benzinga.com/25/03/44069228/elon-mu">and wealth distribution.</a>
For investors, this suggests a cautious approach, prioritizing long-term value over speculative trends. Broad market ETFs, such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), provide diversified exposure to the overall market. Some investors also consider AI-related assets and gold as potential hedges against economic uncertainty.
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Musk Criticizes US Debt, Economic Policies: 'A Poorly Managed Business'

Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has set the investment world abuzz with the announcement of its first-of-a-kind <a href="https://www.benzinga.com/25/02/43844926/quantum-computing-stocks-rgti-qubt-ionq-qbts-cheer-microsofts-majorana-1-launch-satya-nadella-calls-it-a-physics-and-fabrication-breakthrough">quantum chip, Majorana 1</a>. As excitement builds around the breakthrough, ETFs with <a href="https://www.benzinga.com/etfs">exposure to quantum computing</a> and semiconductor advancements are drawing increased investor interest.
Investors looking to capitalize on the quantum computing revolution can explore several ETFs with exposure to key players in this space.
Defiance Quantum ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NYSE">QTUM</a>)
QTUM provides exposure to companies engaged in quantum computing, AI, and machine learning. With holdings in Microsoft, IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), and Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), it is well-positioned to benefit from advancements in quantum technology.
Defiance ETFs CEO Sylvia Jablonski highlighted how Majorana 1 has already driven investor interest in QTUM. "The good thing about that ETF is it holds the large-cap, quality, balance-sheet-established players like MSFT but mixes in pure plays like IonQ and Rigetti as well."
Also Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43854334/microsofts-quantum-leap-will-majorana-1-lift-msft-stock">Microsoft&#8217;s Quantum Leap: Will Majorana 1 Lift MSFT Stock?</a>
Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>)
AIQ invests in firms at the forefront of AI and computational advancements, including Microsoft. With quantum computing playing a crucial role in AI's evolution, the fund could see increased investor interest.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)
While primarily focused on <a href="https://www.benzinga.com/topic/semiconductors">semiconductor companies</a>, SMH includes exposure to firms developing quantum computing hardware. Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Qualcomm (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) and Broadcom are among its top holdings. Given that quantum computing relies on advanced semiconductor technology, any advancements in this sector could indirectly boost the ETF.
Sylvia Jablonski on the ETF Impact of Microsoft's Majorana 1
Jablonski weighed in on the implications of Microsoft's quantum computing advancement, emphasizing its significance for ETFs in the space.
Satya Nadella, Microsoft's Chairman and CEO, described the chip as a "physics and fabrication breakthrough" rather than a pure quantum computing leap. He compared it to the transistor moment of quantum computing, a milestone that could pave the way for the technology's practical application.
Jablonski reinforced this view, stating, "He's saying that we are at a key inflection point where quantum computing transitions from being experimental to practical and scalable. It reminds me of the ChatGPT moment."
Jablonski believes that Microsoft's breakthrough could have lasting implications. "Microsoft's breakthrough accelerates quantum error correction and scalability. It could lead to sustained confidence in the sector. When you have quality companies like Alphabet, Microsoft, and IBM blessing these innovations, that bodes well for the consumer and his or her sentiment on the quantum sector."
According to Jablonski, QTUM ETF balances both risk and reward effectively. "We have both—having the large caps serves as a ballast for risk on volatility on the small caps."
Also Read: <a href="https://www.benzinga.com/trading-ideas/technicals/25/02/43885743/microsofts-quantum-leap-hits-a-technical-snag-death-cross-looms-large">Microsoft&#8217;s Quantum Leap Hits A Technical Snag: Death Cross Looms Large</a>
Are We Closer to Real-World Applications?
Jablonski sees practical applications emerging sooner than skeptics expect. "Microsoft's error correction claims, if validated, represent significant progress. Quantum computing is already used in certain workflows, risk analysis, supply chain, and logistics cases."
Beyond quantum computing, AI-driven ETFs are seeing strong momentum, particularly in automation, robotics, and generative AI. "We also think that 6G and the future of tech connectivity will be a big topic this year," Jablonski noted.
The Road Ahead
Although high error rates and commercialization challenges still limit quantum computing's immediate applications, Microsoft's Majorana 1 chip signals a major step forward. With ETFs offering a diversified approach to investing in this space, investors can position themselves to benefit from the quantum computing revolution while mitigating risks associated with individual stocks.
Read Next: 
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<li><a href="https://www.benzinga.com/25/02/43922550/politics-meets-profit-defiance-etfs-files-for-mag7-themed-etf-magt">Defiance Seeks SEC Approval For ETF Tied To Trump Policies: &#8216;You Could Have A Nice Run, But&#8230;&#8217;</a></li>
</ul>
Photo: Shutterstock

EXCLUSIVE: 3 ETFs Positioned For Microsoft's Quantum Breakthrough

The ongoing AI arms race, spurred by disruptive developments such as <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43250480/nvidia-sinks-below-200-day-average-for-first-time-in-2-years-deepseek-technical-reset">DeepSeek's latest models</a>, has thrust funds with significant exposure to AI and tech stocks in the spotlight again. 
Adding to the disruption, a report by Reuters said Alibaba Group Holding Ltd &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) launched its <a href="https://www.benzinga.com/25/01/43311376/alibaba-unveils-qwen25-max-claims-it-beats-deepseek-and-openai-in-ai-performance-race">Qwen 2.5-Max AI model</a> on Jan. 29, claiming it outperforms DeepSeek-V3, OpenAI's GPT-4.0 and Meta's Llama-3.1-405B. This escalating competition opens a great opportunity for investors to cash in on the trend while it lasts, through<a href="https://www.benzinga.com/etfs"> AI-focused ETFs</a>.
Here are three AI and tech-based ETFs to watch:
<h1 class="wp-block-heading">Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>)</h1>
This fund provides broad exposure to top AI companies, including semiconductor firms and software developers. Expense ratio for this ETF is 0.68%. Holdings include NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), all of which are integral to AI advancements. Among international exposure are stocks of Alibaba and Tencent Holdings Ltd., which are frontrunners in the AI race. We will discuss more about why these stocks are in focus today a little later in the article.
<h1 class="wp-block-heading">ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>)</h1>
Managed by <a href="https://www.benzinga.com/topic/cathie-wood">Cathie Wood</a>'s ARK Invest, this fund targets companies playing in AI-driven automation and robotics. Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Nvidia and other AI-centric firms dominate its holdings. It charges an expense ratio of 0.75%.
<h1 class="wp-block-heading">Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</h1>
Though not AI-specific, this ETF offers exposure to the biggest names in tech, many of which are leading AI developers. Its holdings include Microsoft, Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), and Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), all of which are making major AI investments.
Also Read: <a href="https://www.benzinga.com/25/01/43302340/deepseeks-ai-breakthrough-microsoft-poised-to-benefit-but-oracle-faces-cloud-growth-challenges">DeepSeek&#8217;s AI Breakthrough Benefits Microsoft, But Oracle Faces Cloud Growth Challenges: Analyst</a>
<h1 class="wp-block-heading">DeepSeek's Market Disruption</h1>
DeepSeek's ability to deliver high-performance AI at low cost has taken Silicon Valley by storm, prompting a price war in China. Global investors were left scrambling to reassess their AI bets. The company's DeepSeek-V3 model, launched on Jan. 10, followed by its R1 model on Jan. 20, threw tech stocks on a slide and forced competitors to rethink their strategies.
Alibaba's quick response with its Qwen 2.5-Max AI model has only intensified the battle. The Chinese tech giant asserts that its model outperforms DeepSeek-V3, OpenAI's GPT-4o, and Meta's Llama-3.1-405B. Meanwhile, ByteDance, Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), Tencent and a slew of other Chinese AI players have been racing to upgrade their own AI offerings. Tencent has developed several upgrades on its AI model Hunyuan, according to the Wall Street Journal. Baidu with its Earnie Bot and ByteDance with its Doubao are close behind.
The disruption also triggered questions among investors in U.S.-listed AI companies on the massive spending plans of industry leaders, particularly as a cost-efficient alternative emerges from China. 
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/01/43311771/teslas-q4-results-could-shake-up-these-top-etfs">Tesla&#8217;s Q4 Results Could Shake Up These 3 ETFs</a></li>
</ul>
Photo: Shutterstock

Emerging Market ETFs

Global

BABA

BIDU

AI ETFs In Focus As Alibaba Challenges DeepSeek With New Model

Meta&nbsp;Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) <a target="_blank" href="https://www.benzinga.com/topic/meta" rel="noreferrer noopener">is trying to promote</a> Instagram by exploiting the absence of the Chinese rival TikTok download option from Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google stores.
In 2020, President Donald Trump threatened to ban TikTok, citing <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42772746/tiktok-set-for-a-ban-on-jan-19-by-law-but-trump-has-other-plans" rel="noreferrer noopener">national security threats</a> due to its ownership by ByteDance Ltd. However, recently, Trump urged the Supreme Court to delay the TikTok ban after assuming charge as the new President on January 20.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43200619/byd-geely-and-saic-fight-back-against-eus-high-ev-tariffs-in-legal-battle" rel="noreferrer noopener">BYD, Geely, SAIC Contest EU&#8217;s High EV Tariffs In Court</a>
Previously, the Biden administration ordered ByteDance to divest its ownership of TikTok or face an effective ban on the app in the U.S. on January 19.
TikTok, has 170 million U.S. users and accounts for ~4% of the U.S. digital ad market. Around 63% of teens aged 13 to 17 use TikTok compared to 59% who use Instagram, CNBC cites a 2023&nbsp;Pew Research Center survey.
The Facebook and Instagram parent encouraged creators to promote Instagram on other short-form video apps, like TikTok, Snap Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) Snapchat, and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) YouTube including three months of posting exclusivity by doling out attractive offers, CNBC <a target="_blank" href="https://www.cnbc.com/2025/01/26/meta-is-paying-creators-to-promote-instagram-on-other-video-apps.html" rel="noreferrer noopener">cites</a> from a creator contract details.&nbsp;
Meta&#8217;s monthly cash bonuses ranged from $10,000 to $50,000 to shift their videos to Instagram Reels, CNBC cites the Information. The deals last six months and obligate a creator to post a minimum of eight Instagram Reels per month.
Meta paid over $2 billion to <a target="_blank" href="https://www.benzinga.com/news/24/10/41176448/mark-zuckerbergs-facebook-paid-2b-to-content-creators-in-the-past-year-and-it-wants-to-pay-out-more" rel="noreferrer noopener">content creators&nbsp;in 2024</a>. Four million content creators have reportedly made money from the platform since 2017.
Meanwhile, <a target="_blank" href="https://www.benzinga.com/25/01/43198088/tiktok-ban-sparks-divide-oracle-backs-trump-while-apple-google-play-it-safe" rel="noreferrer noopener">Trump allies, including</a> Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder and Chairman&nbsp;Larry Ellison and Elon Musk, emerged as eligible contenders for&nbsp;TikTok after Trump suspended the TikTok ban for 75 days.
<h2 class="wp-block-heading">META Stock Prediction For 2025</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Meta Platforms, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Meta Platforms, the 200-day moving average sits at $536.57, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $647.49. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Investors can gain exposure to Meta through iShares U.S. Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: META stock is down 1.57% at $637.71 premarket at the last check on Monday.
Also Read:
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<li><a href="https://www.benzinga.com/25/01/43197956/qualcomm-gains-2-billion-boost-from-samsung-s25-chipset-deal-analyst-highlights-growth-in-handsets-and-beyond" target="_blank" rel="noreferrer noopener">Qualcomm Gains $2 Billion Boost From Samsung S25 Chipset Deal, Analyst Highlights Growth in Handsets and Beyond</a></li>
</ul>
Image via Shutterstock

Government

Regulations

Media

SNAP

Meta Wants To Leverage TikTok Ban Threat to Promote Instagram On Other Social Media, Offers Cash Deals

Ericsson (NASDAQ: ERIC) reported fourth-quarter fiscal 2024 results on Friday.
The <a target="_blank" href="https://www.benzinga.com/topic/telecom" rel="noreferrer noopener">Swedish telecom equipment maker&#8217;s</a> sales grew 1% year-over-year to 72.9 billion Swedish Krona, driven by 54% <a target="_blank" href="https://www.ericsson.com/en/newsroom" rel="noreferrer noopener">growth </a>in the North American market. In USD, sales of $6.77 billion missed the analyst consensus estimate of $6.93 billion.
Also Read: <a target="_blank" href="https://www.benzinga.com/media/25/01/43168435/google-taps-htcs-talent-in-250-million-deal-to-lead-ar-vr-innovation" rel="noreferrer noopener">Google Taps HTC&#8217;s Talent in $250 Million Deal to Lead AR/VR Innovation</a>
Group organic sales grew by 2% Y/Y. Adjusted gross margin improved to 46.3% from 41.1% Y/Y, driven by substantial expansion in Networks.
Adjusted EBIT margin was 13.1% versus 10.3% Y/Y due to a non-cash&nbsp;impairment loss relating to the Vonage acquisition.&nbsp;Adjusted EBITA margin improved to 14.1% from 11.4% a year ago, benefiting from higher gross income and cost actions.
Ericsson reported an EPS of SEK 1.44 versus SEK 1.02 Y/Y. In USD, EPS of $0.13 missed the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $0.19</a>.
Free cash flow before M&amp;A was SEK 15.82 billion in the quarter, benefiting from the operational improvements.
As of December 31, 2024, net cash stood at SEK 37.8 billion.
Dividend: Ericsson board will propose a 2024 dividend per share of SEK 2.85 (up from SEK 2.70 Y/Y).
CEO Börje Ekholm noted further signs that the overall RAN market is stabilizing, with strong growth in North America supporting a return to Networks sales growth in the fourth quarter. However, the company has yet to accomplish its long-term EBITA goal.&nbsp;
Outlook: Ericsson&nbsp;expects <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">first-quarter&nbsp;sales growth</a> for Networks and Cloud Software and Services to be similar to the 3-year average seasonality and a first-quarter adjusted gross margin for Networks of 47%- 49%.
Ericsson and rivals grappled with a weak <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39745508/ericsson-gains-premarket-after-q2-print-whats-going-on" rel="noreferrer noopener">telecom equipment market</a> as operators postponed expensive network upgrades. This prompted companies like Ericsson to adopt cost-cutting measures and pivot to markets like the U.S. and India.
Ericsson stock surged over 57% in the last 12 months. Investors can gain exposure to the stock through Defiance Connective Technologies ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIXG#NASDAQ">SIXG</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: ERIC stock is down by 8.20% at $8.17 premarket at last check Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110913/apples-iphone-dependence-remains-but-services-wearables-offer-growth-potential-analyst" target="_blank" rel="noreferrer noopener">Apple&#8217;s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst</a></li>
</ul>
Photo by Mats Wiklund via Shutterstock.

Earnings

Guidance

Dividends

Movers

ERIC

Ericsson Q4 Earnings: Sales Climb 1%, North America Shines, Dividend Raise, Guidance And More

<figure class="wp-block-image size-large"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2025/01/2025-01-22_07h51_16.png" alt="" /></figure>
To gain an edge, this is what you need to know today.
<h4 class="wp-block-heading">Fueling AI Frenzy</h4>
An enlarged chart of artificial intelligence ETF Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Note the following:
<ul>
<li>The chart shows there is a breakout in artificial intelligence ETF in the early trade this morning.&nbsp; As a caution, all breakouts do not sustain. Prudent investors should carefully watch if the breakout sustains or if it fails.</li>
<li>RSI on the chart shows AIQ is barely overbought.&nbsp; RSI shows the ETF has room to run higher.</li>
<li>Volume on the chart has been staying high, indicating sustained interest.</li>
<li>The Trump administration has announced an artificial intelligence project called Stargate.&nbsp; Stargate is a $500B venture to build AI data centers.&nbsp; The initial equity funders of the joint venture are OpenAI, SoftBank Group Corp &#8211; ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>), Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), and Abu Dhabi's MGX.&nbsp; NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Arm Holdings PLC &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) are technology partners.</li>
<li>The announcement of Stargate is adding fuel to the AI frenzy.</li>
<li>In The Arora Report analysis, the headline of $500B for Stargate may turn out to be a mirage.&nbsp; The initial number is $100B and includes previously announced projects.&nbsp; The new funding may be significantly less than $100B.&nbsp; For the time being, the analysis does not matter because the momo crowd is buying extremely aggressively on the headline.</li>
<li>Trump commented that 10% tariffs on China are under consideration.&nbsp; This is better news for Chinese stocks than the previously mentioned 60% tariffs.&nbsp; However, Chinese stocks sank on Trump's comment, and the yuan declined.</li>
<li>The U.S. stock market ran up yesterday, in part, on the assumption that China may escape tariffs.&nbsp; This morning in the early, the market is ignoring Trump's China comments and continues to run up.</li>
<li>Extreme positive sentiment is evidence as the market runs up on positive rumors, but when the rumors turn out to be false and the facts are negative, the market ignores it.&nbsp; In The Arora Report analysis, history is clear.&nbsp; Long term investments should be initiated when sentiment is extremely negative and profits should be taken when sentiment is extremely positive.&nbsp; The best way to take advantage of extremely positive sentiment is through tactical positions.&nbsp;&nbsp;</li>
<li>The market is also being helped by strong earnings from: Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), United Airlines Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), Procter &amp; Gamble Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>).</li>
<li>Leading Indicators will be released at 10am ET and may be market moving.</li>
</ul>
<h4 class="wp-block-heading">Magnificent Seven Money Flows</h4>
In the early trade, money flows are positive in Amazon.com, Inc., Meta Platforms Inc, NVDA, and MSFT.
In the early trade, money flows are neutral in Alphabet Inc Class C.
In the early trade, money flows are negative in Apple Inc and Tesla Inc.
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust and Invesco QQQ Trust Series 1.
<h4 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h4>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust.  The most popular ETF for silver is iShares Silver Trust.  The most popular ETF for oil is United States Oil ETF.
<h4 class="wp-block-heading">Bitcoin</h4>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing selling on continued disappointment that Trump has not announced a bitcoin reserve.
<h4 class="wp-block-heading">Protection Band And What To Do Now</h4>
It is important for investors to look ahead and not in the rearview mirror.&nbsp; The proprietary protection band from The Arora Report is very popular.&nbsp; The protection band puts all of the data, all of the indicators, all of the news, all of the crosscurrents, all of the models, and all of the analysis in an analytical framework that is easily actionable by investors.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h4 class="wp-block-heading">Traditional 60/40 Portfolio</h4>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

$BTC

IBKR

NFLX

SFTBY

Stargate Adds Fuel To AI Frenzy, Chinese Stocks Sink On Trump Tariff Talk

President-elect Donald Trump spotlighted artificial intelligence and drilling expansion as pillars of his economic vision Tuesday, pledging to foster AI-driven innovation while slashing energy<a href="https://www.benzinga.com/topic/regulations"> costs through expanded deregulation.</a>
During a press conference at Mar-a-Lago, Trump outlined plans to accelerate America's leadership in artificial intelligence by supporting private investments in data centers and energy infrastructure.
"A lot of people don&#8217;t realize that AI is going to be a big thing but you'll need double the electricity at least that we have right now," Trump said, hinting at the plan to markedly raise U.S. energy production to meet fast-growing AI demands.
He indicated that expanding access to oil and gas is critical to keeping energy costs low and powering future industry.
Calling Biden's offshore drilling ban "a crime" against America's economic potential, Trump pledged to overturn the policy immediately upon taking office. "We're going to be drilling, and energy costs are going to come way down," he said.
According to Trump, reversing Biden&#8217;s offshore drilling ban would unlock 625 million acres of offshore reserves valued at $50 to $60 trillion.
<h1 class="wp-block-heading">Trump Pledges Faster Permits</h1>
Trump contrasted the U.S. permitting delays with China's rapid expansion of energy infrastructure, which he said is fueling its artificial intelligence sector. 
He called out the U.S. permitting system as a major barrier to economic progress, particularly in the energy sector.
"China is already building massive electric facilities, and you know how they're being fired up? With coal," Trump said. 
The tycoon pledged to streamline environmental permitting for large-scale projects, promising expedited reviews for companies investing $1 billion or more in the U.S. economy. 
"We're going to move them quickly through the environmental process," Trump said, referencing delays that have sometimes lasted more than a decade. 
"I've seen plants in Louisiana where I got it approved in literally a week after they spent 14 and a half years trying to get it done."
Trump framed this regulatory overhaul as essential for keeping America competitive, particularly in energy and artificial intelligence. 
<h1 class="wp-block-heading">Market Reactions</h1>
U.S. oil and gas stocks outperformed on Tuesday, with the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) up by 1%, yet trimming session gains in afternoon trading.
The broader energy sector&#8217;s price action showed little sign of bullish momentum after Trump&#8217;s remarks.
Among individual names, Devon Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>) gained 2.8%, Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) rose 2.7%, and Hess Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>) advanced 2%, leading the pack of Tuesday&#8217;s top-performing, large-cap energy stocks.
The technology-heavy AI sector lagged significantly, with the Global X Artificial Intelligence &amp; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NYSE">AIQ</a>) closing nearly 2% lower. The decline in AI sector came as NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) tumbled 6% and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell 4.1%.
Read Next: 
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</ul>
Photo: Lukasz Z via Shutterstock

Commodities

Contracts

Politics

Econ #s

Trump Vows To Power AI Boom With Expanded Oil Drilling: 'Need Double The Electricity At Least That We Have Right Now'

Benchmark analyst Fawne Jiang maintained a Buy rating on Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) with a <a target="_blank" href="https://www.benzinga.com/quote/BABA/analyst-ratings" rel="noreferrer noopener">price target of $118</a>.
Jiang remarked that Alibaba&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">latest earnings report</a> was a mixed bag, offering encouraging signs and areas of concern. While customer management revenue (CMR) grew by 2.5% year-over-year in the second quarter, slightly surpassing expectations, general merchandise volume (GMV) showed only modest growth.
Also Read: <a href="https://www.benzinga.com//node/42032495" target="_blank" rel="noreferrer noopener">Alibaba Eyes Raising $5 Billion Via Bond Sale to Fund Debt Payoff and Stock Buybacks</a>
Jiang anticipates better monetization in upcoming quarters, supported by the introduction of software service fees and increased use of the Quanzhantui marketing tool. However, subdued GMV growth raises questions about Alibaba&#8217;s ability to maintain its market share amid rising competition.
Alibaba&#8217;s second-quarter fiscal 2025 revenue reached 236.5 billion Chinese yuan, a 5% increase year-over-year but falling short of consensus estimates of 239.4 billion Chinese yuan. Adjusted EBITDA totaled 47.3 billion Chinese yuan, exceeding expectations of 46.9 billion Chinese yuan.
Notably, growth varied across segments: Taobao and Tmall Group grew by 1%, international digital commerce surged by 29%, local services rose by 14%, Cainiao logistics increased by 8%, and cloud services were up 7%. Digital media and entertainment dipped by 1%, while other segments grew by 9%.
The volatility in GMV growth reignited debates over Alibaba&#8217;s ability to defend its market position effectively. Despite management&#8217;s optimism about solid performance during the Double 11 shopping event, the decline in TTG&#8217;s EBITDA margin—down 3.2 percentage points year-over-year—signals heavy investments in diversifying supply and improving customer experience.
Jiang expects a gradual recovery, aided by consumption growth and new user acquisition via channels like WeChat Pay. Additionally, reductions in losses from non-core assets could offset margin pressure at the group level.
Jiang revised Alibaba&#8217;s fiscal 2025 and fiscal 2026 revenue estimates downward to 996 billion Chinese yuan (prior 998 billion Chinese yuan) and 1,083 billion Chinese yuan (1,089 billion Chinese yuan prior), respectively, due to a focus on improving profitability over rapid growth.
The analyst adjusted the fiscal 2025 EBITDA forecast to 198 billion Chinese yuan from a previous estimate of 205 billion Chinese yuan, factoring in increased investment in Taobao and Tmall Group (TTG).
The fiscal 2026 EBITDA projection remains essentially unchanged at 222 billion Chinese yuan.
Jiang&#8217;s price target of $118 reflects an 11.5x multiple of the projected fiscal 2025 adjusted EPS of $8.07, plus net cash per share of $24.27.
Alibaba Group Holding stock has gained over 18% year-to-date. Investors can gain exposure to the stock through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action:&nbsp;BABA stock is up 0.36% at $88.91 at&nbsp;the last check on Monday.
Also Read:
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41943966/stratasys-ceo-touts-turnaround-strong-market-gains-cost-cuts-drive-q3-beat-guidance-raised" target="_blank" rel="noreferrer noopener">Stratasys CEO Touts Turnaround: Strong Market Gains, Cost Cuts Drive Q3 Beat, Guidance Raised</a></li>
</ul>
Photo via Wikimedia Commons

Price Target

Reiteration

AVEM

Alibaba's Monetization Strategy Gains Momentum, But GMV Growth Lags: Analyst

AI-themed exchange-traded funds (ETFs) are witnessing a significant surge as asset managers capitalize on the growing enthusiasm surrounding <a href="https://www.benzinga.com/topic/artificial-intelligence">artificial intelligence</a>. This year, over one-third of the two dozen AI-focused ETFs were launched, according to Morningstar.
What Happened: In the past week alone, three new ETFs have entered the AI sector, including one that was rebranded to specifically focus on artificial intelligence, Reuters reported on Monday. The total assets of AI ETFs have now reached $4.5 billion, approaching the $5.5 billion held by nuclear power-themed ETFs and surpassing the $1.37 billion in the cannabis sector.
Daniel Sotiroff, a senior analyst at Morningstar, remarked on the trend, stating, &#8220;I&#8217;m not surprised their ranks are multiplying.&#8221; 
He emphasized that the industry&#8217;s rapid pace attracts investors eager for quick returns, according to the report.
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41560703/november-interest-rate-cut-almost-a-done-deal-as-blackout-begins-10-stocks-surging-the-most-sinc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">November Interest Rate Cut Almost A Done Deal As Blackout Begins: 10 Stocks Surging The Most Since Fed&#8217;s Last Decision</a>
As per Benzinga Pro data, here are how some of the AI-based ETFs performed over the past year:
Global X Robotics and Artificial Intelligence ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>): BOTZ, currently with net assets worth $2.51 billion and NAV of $31.59, climbed 40.39%. Its top AI-related holdings include Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and biotech firm Intuitive Surgical Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>).
Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>): AIQ, which has $2.27 billion in net assets and $37.36 NAV, increased by 43.64%. Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), Cisco Systems Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), and Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) are some of its top AI-related holdings.
iShares US Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYW#NYSE">IYW</a>): IYW gained 50.72% in the past year. The ETF has an NAV of $155.42 and $19.24 billion in net assets. It also gives exposure to tech stocks like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Nvidia, Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) which have witnessed stellar growth, thanks to AI buzz.
Fidelity MSCI Information Technology Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FTEC#NYSE">FTEC</a>): The ETF witnessed a 48.55% growth while exposing to stocks like Apple, Microsoft, Nvidia, Alphabet and Broadcom. It holds $12.05 billion in net assets. 
Why It Matters: The surge in AI-themed ETFs is part of a broader trend driven by the increasing demand for artificial intelligence technologies. Recently, Nvidia briefly surpassed Apple to become the <a href="https://www.benzinga.com/markets/equities/24/10/41551461/nvidia-overtakes-apple-as-worlds-most-valuable-company-again">world&#8217;s most valuable company</a>, fueled by the demand for its AI supercomputing chips. This highlights the growing importance of AI in the tech sector.
Moreover, the <a href="https://www.benzinga.com/news/24/10/41351070/imf-warns-ai-in-stock-trading-can-boost-efficiency-but-warns-of-increased-market-volatility">International Monetary Fund</a> (IMF) has noted AI&#8217;s potential to enhance market efficiency but warns of increased volatility and cyber threats. The IMF&#8217;s Global Financial Stability Report suggests that AI-driven trading could revolutionize markets, although its adoption remains limited. The report also cautions about the potential shift of investments to less regulated nonbank financial intermediaries, complicating market oversight.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/10/41517027/five-us-banks-face-billions-in-losses-as-silvers-price-spike-hits-short-sellers-hard-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Five US Banks Face Billions In Losses As Silver&#8217;s Price Spike Hits Short Sellers Hard: Report</a></li>
</ul>
Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.
Photo courtesy: Unsplash

General

FTEC

ISRG

More Than A Third Of AI-Based ETFs Were Launched In 2024, Focusing On Nvidia, Microsoft, Apple And Meta, Among Others: Here's How Some Of Them Have Performed This Year So Far

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) are joining forces in a significant investment in a Chinese autonomous-driving company&#8217;s IPO, signaling their confidence in the fast-growing market.
Horizon Robotics, a firm specializing in advanced driver-assistance systems, aims to raise nearly $700 million through its upcoming listing on the Hong Kong Stock Exchange, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/autos/alibaba-baidu-invest-in-chinese-smart-driving-tech-companys-near-700-million-ipo-2aca0a20?mod=tech_lead_pos2" rel="noreferrer noopener">reports</a>.
The company plans to begin taking orders from institutional investors this Wednesday.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41312039/whats-going-on-with-us-listed-chinese-stocks-alibaba-baidu-nio-xpeng-on-monday" rel="noreferrer noopener">What&#8217;s Going On With US Listed Chinese Stocks Alibaba, Baidu, Nio, XPeng on Monday?</a>
Alibaba, Baidu, and state-owned Beijing Financial Holdings have committed to purchasing over 30% of Horizon Robotics&#8217; shares before the official IPO.
The stock will start trading on October 24, and Horizon Robotics expects this cornerstone backing to boost appeal among institutional and retail investors.
The proceeds from the offering will primarily go toward research and development, with around 70% of the funds earmarked for this purpose over the next five years. The remaining funds will go toward marketing and operational expenses.
Top banks like Goldman Sachs, Morgan Stanley, and China Securities International are advising on the deal.
Recently, Alibaba&#8217;s <a target="_blank" href="https://www.benzinga.com/government/24/09/40977069/alibaba-teams-up-with-nvidia-to-supercharge-evs-for-chinese-automakers-report" rel="noreferrer noopener">cloud unit tapped</a> Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to enhance autonomous driving tech for Chinese EV makers like Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) and Xiaomi Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>).
In collaboration with Banma Network Technology and Nvidia, Alibaba Cloud unveiled a large multimodal model (LMM) solution for automotive applications at the Apsara Conference.
The solution integrates Alibaba Cloud&#8217;s Qwen portfolio of proprietary large language models (LLMs) with Nvidia&#8217;s Drive AGX Orin platform to enhance in-car voice assistants.
Alibaba and Baidu gained 12%-22% in the last 30 days.
Investors can gain exposure to Alibaba, also known as China&#8217;s tech barometer, through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Actions: BABA stock is up 0.28% at $102.13 premarket at last check Wednesday.
Also Read:
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</ul>
Photo courtesy: Shutterstock

Emerging Markets

IPOs

XIACF

XIACY

Alibaba And Baidu Bet Big On Autonomous Driving, Back $700M Horizon Robotics IPO

Dutch chip-equipment maker ASML Holdings N.V.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) <a href="https://www.benzinga.com/markets/equities/24/10/41341168/chipmaker-stocks-sink-on-asml-earnings-leak-oil-eyes-worst-1-day-drop-this-year-small-caps-rally">smaller-than-expected bookings for the third quarter and guidance cut </a>sent shares of companies with exposure to artificial intelligence lower on Tuesday.
Overreaction: ASML guiding 2025 revenue led to an overreaction by the broader AI hardware sector, which fell 4.5% on Tuesday compared to Nasdaq&#8217;s 1.2% fall, said Deepwater Asset Management&#8217;s Gene Munster.
Only about 10% of ASML&#8217;s revenue could be attributable to AI demand, the tech venture capitalist said. He estimates that about 40% of the company&#8217;s revenue comes from its extreme ultraviolet, or EUV, lithography machines which are required for AI chip production. Assuming these machines produce AI-related chips 25% of the time, 10% of the overall business can be attributed to AI, he said.
Munster noted that ASML clarified that the weakness was not related to AI, but rather to other areas in logic, a slower-than-expected ramp in memory capacity additions, and weakening China demand for the company&#8217;s Immersion systems.
&#8220;The AI trade is on track,&#8221; he added.
See Also: <a href="https://www.benzinga.com/money/best-artificial-intelligence-stocks">Best AI Stocks</a>
Why It&#8217;s Important: Optimism regarding AI technology has abounded since OpenAI&#8217;s AI chatbot ChatGPT gained prominence, and chipmaker Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has emerged as the poster child of the AI revolution. Although most analysts see the <a href="https://www.benzinga.com/markets/equities/24/05/38910879/stock-market-to-rally-for-3-5-years-before-ai-bubble-bursts-predicts-veteran-analyst-gene-munste">AI bubble lasting through three to five years</a>, investors have become wary about the stretched valuations of some of these stocks, especially due to the heavy investments companies are forced to make upfront before they begin to reap the rewards.
Wedbush&#8217;s Daniel Ives said in a note published on Tuesday that he expects a tidal wave of enterprise spending as AI use cases explode across the enterprise. &#8220;We believe the overall AI infrastructure market opportunity could grow 10x from today through 2027 as this next generation AI foundation gets,&#8221; the analyst said. He estimates a $1 trillion of AI cap-ex spending is on the horizon over the next 3 years
The Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) fell 1.76% to $37.42 on Tuesday, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41348844/nvidia-apple-and-microsoft-in-race-for-4-trillion-market-cap-stage-is-set-for-tech-stocks-for-an">Nvidia, Apple, And Microsoft In Race For $4 Trillion Market Cap: &#8216;Stage Is Set For Tech Stocks For Another 20% Move Higher In 2025&#8217;</a></li>
</ul>
Image via Shutterstock

Long Ideas

ASML

After ASML Rocks AI Hardware Names, Gene Munster Explains Why It's 'Overreaction:' 'AI Trade Is On Track'

In a blog post on Tuesday, the International Monetary Fund (IMF) highlighted the potential of artificial intelligence to enhance market efficiency while also posing risks of increased volatility and cyber threats.
What Happened: The IMF&#8217;s Global Financial Stability Report delves into the role of AI in financial institutions and its potential impact on markets. AI&#8217;s rapid data processing capabilities could revolutionize markets, but its adoption remains limited among investors. The report anticipates growth in AI-driven trading, especially in liquid asset classes like equities and bonds, which could lead to market instability. This was evident during the March 2020 market turmoil involving AI-driven ETFs.
Patent data reveals a surge in AI-related innovations for algorithmic trading, indicating a forthcoming wave of technological advancements. The IMF warns that AI might shift investments to less regulated nonbank financial intermediaries, complicating market oversight. 
To tackle these challenges, the IMF suggests enhancing regulation and supervision of AI-related activities, implementing new volatility response mechanisms, and strengthening oversight of nonbank intermediaries.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41308908/man-who-accidentally-threw-hard-drive-containing-8-000-bitcoins-worth-half-a-billion-dolla?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Man Who Accidentally Threw Hard Drive Containing 8,000 Bitcoins Worth Half A Billion Dollars In Landfill Sues Local City Council For Not Excavating The Site</a>
Why It Matters: The potential impact of AI on financial markets has been a topic of concern for some time. In June, IMF Deputy Chief Gita Gopinath warned about <a href="https://www.benzinga.com/news/24/06/39224309/imfs-gita-gopinath-warns-ai-could-disrupt-financial-markets-supply-chains-and-more-policy-actions-no">AI&#8217;s disruptive potential</a> on financial markets and other sectors, emphasizing the need for policy actions to mitigate risks while harnessing AI&#8217;s benefits. Her comments highlighted the importance of monitoring AI&#8217;s adoption and application across various sectors.
Additionally, the 2024 U.S. presidential election has been identified as a <a href="https://www.benzinga.com/markets/24/10/41125551/why-the-us-presidential-election-will-be-a-watershed-moment-for-artificial-intelligence-in-trading-f">pivotal moment for AI </a>in trading. The election&#8217;s unpredictability, coupled with AI&#8217;s growing role in forecasting for broker-dealers, suggests that AI could face significant challenges in the coming months. This period may serve as a watershed moment for trading intelligence, as election uncertainty could lead to increased market volatility.
Price Action: At the time of writing during Tuesday&#8217;s after-hours market, AI ETFs were showing mixed activity, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>. First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROBT#NASDAQ">ROBT</a>) was up y 2.47%, Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) was up by 1.28% and iShares Global Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXN#NYSE">IXN</a>) was up by 2.60%. However, iShares Expanded Tech Sector ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGM#NYSE">IGM</a>) was down by 1.42%.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41306653/anthony-scaramucci-praises-trump-for-shifting-the-crypto-debate-hes-now-forced-the-democra?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Anthony Scaramucci Praises Trump For Shifting The Crypto Debate: &#8216;He&#8217;s Now Forced The Democrats To Come Back Into The Middle&#8217;</a></li>
</ul>
Disclaimer: This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.
Image Created using AI via Midjourney

iShares Trust S&P Global Information Technology Sector Index Fund

ROBT

IMF Warns AI In Stock Trading Can Boost Efficiency, But Warns Of Increased Market Volatility

Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), also known as China&#8217;s tech barometer, continued to trade higher on Monday as China shared its <a target="_blank" href="https://www.benzinga.com/government/24/09/41065178/whats-going-on-with-chinese-ev-stocks-nio-xpeng-zeekr-on-friday" rel="noreferrer noopener">stimulus plans last week</a>.
China&#8217;s central bank&nbsp;plans to cut banks&#8217; reserve requirement ratio (RRR) by 50 basis points or half a percentage point. It also plans to lower the seven-day reverse repurchase rate to 1.5% from 1.7%.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/41045187/alibaba-follows-amazon-and-walmart-pours-5-7b-into-holiday-sales-push" rel="noreferrer noopener">Alibaba Follows Amazon And Walmart, Pours $5.7B Into Holiday Sales Push</a>
Shawn Yang of Arete Research <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280270/alibaba-looks-course-turnaround-amid-renewed-investor-frenzy-chinese-stocks" rel="noreferrer noopener">told</a> SCMP that he expects Alibaba, China&#8217;s leading e-commerce stock, to be the prime beneficiary of the stimulus.
As per Yang, Alibaba&#8217;s cloud services&nbsp;and international expansion further enhance its position. Recent reports indicated that Alibaba is collaborating with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to boost the&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/09/41023040/nvidia-xpeng-join-alibabas-apsara-conference-to-showcase-ai-tech-advancements" rel="noreferrer noopener">autonomous driving&nbsp;experience</a> of Chinese smart vehicle companies like Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>). Alibaba also partnered with XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>).
Appaloosa Management founder David Tepper ramped up exposure to China through Alibaba, JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>),&nbsp;Baidu&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), as per a CNBC <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280270/alibaba-looks-course-turnaround-amid-renewed-investor-frenzy-chinese-stocks" rel="noreferrer noopener">interview</a>. JD.com, Baidu, and PDD stocks are also trading up on Monday.
Last week, &nbsp;Alibaba and JD.com <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/41066338/alibaba-jd-com-strike-deal-to-open-ecosystems-amid-slowing-growth-and-chinas-antitrust-pressure" rel="noreferrer noopener">opened their walled gardens</a> to combat the slowdown in demand. Taobao and Tmall platforms integrated JD.com&#8217;s logistics services.
JD.com agreed to leverage Alibaba&#8217;s logistics network Cainiao Global Express and Cainiao Stations and added Alipay, Alibaba&#8217;s fintech arm, as a payment option.
Alibaba stock gained 20% in the last 5 days. Investors can gain exposure to the stock through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: BABA stock is up 4.16% at $111.79 premarket at the last check Monday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/09/41073117/apples-reviews-strategy-cuts-film-budgets-after-blockbuster-spend-whats-next-for-apple-tv" target="_blank" rel="noreferrer noopener">Apple&#8217;s Reviews Strategy, Cuts Film Budgets After Blockbuster Spend &#8211; What&#8217;s Next for Apple TV+?</a></li>
</ul>
Image by zhu difeng on Shutterstock

Citigourp Global Markets 2% Protected Notes Linked To The Djia

XPEV

What's Going On With Alibaba Stock On Monday?

It&#8217;s a week since the Intelligent Livermore ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIVR#NASDAQ">LIVR</a>), an <a href="https://www.benzinga.com/money/best-etfs">exchange-traded fund </a>that aims to mimic the investment philosophies of prominent investors, debuted, and here&#8217;s a look at how the financial asset has fared and the opportunity it presents for investors.
LIVR&#8217;s Origin? For the unversed, LIVR is the first instrument launched by investment firm Intelligent Alpha floated by Doug Clinton, co-founder and Managing Partner at Deepwater Asset Management. Intelligent Alpha aims to use artificial intelligence technology to zero in on portfolio assets, tapping specifically into three of the most popular large-language models such as OpenAI&#8217;s ChatGPT, Anthropic&#8217;s Claude and Alphabet, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Gemini. 
LIVR has been named after <a href="https://www.benzinga.com/general/11/07/1808727/celebrating-the-life-of-jesse-livermore">famed 20th-century investor Jesse Livermore </a>who is considered the pioneer of day trading. To start with, the LIVR portfolio will focus on opportunities in AI, Latin American equities, Asian equities, renewables and energy, and defensive stocks as selected by the AI investment committee, the firm said.
&#8220;My experience investing in emerging technologies over the last decade makes me believe that large-language AI models will drive a trillion-dollar shift in the asset management industry from traditional passive and active portfolios to AI-powered portfolios," said Clinton in a statement.
The ETF created a unique investment strategy by drawing upon inputs from financial information, public letters, interviews and statements from finance legends such as Warren Buffett and hedge fund managers such as Stanley Druckenmiller and David Tepper, Clinton reportedly <a href="https://fortune.com/2024/09/19/etf-warren-buffett-druckenmiller-tepper-finance-investors/">told</a> Fortune. 
&#8220;They can sort of replicate or pretend to be any investor. That's one of the superpowers of AI,&#8221; he reportedly said. &#8220;You could have it be a super aggressive growth investor, or you could have it be a super value conscious Buffett acolyte.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-artificial-intelligence-stocks">Best AI Stocks</a>
LIVR has an expense ratio of 0.69% and it has $13.8 million in assets under management. The top five holdings of the ETF and each of their portfolio weightings are:
<ul>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>): 4.60%</li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 4.55%</li>
<li>Nvidia Corp. (NASDAQ: NVDA): 4.51%</li>
<li>Taiwan Semiconductor Management Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>): 4.41%</li>
<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>): 2.96%</li>
</ul>
Performance: LIVR began trading on the Nasdaq on Wednesday, Sept. 18, starting the session at a net asset value of $25.21 before ending down about 0.6% at $25.05. The ETF largely remained rang-bound around the $25 level and ended Tuesday&#8217;s session up 2.07% at $26.08. Over the past week, the ETF has gained 4.1%, outperforming the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the SPDR S&amp;P 500 ETF Trust (NYSE SPY), which are up a little over 3% and 2%, respectively.
During the same time, the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) has added a comparable 4.6%.
It&#8217;s still in the early days to assess the success of the ETF. That said, the heavy weighting of AI-levered stocks could keep it on track to perform in line with these stocks. Since the AI bubble is seen to last for three to five years, LIVR could make hay while the sun shines. That said, the Federal Reserve&#8217;s interest rate cut is widely expected to apply brakes on the tech rally.
On Tuesday, LIVR added 2.07% before ending at $26.08, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
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Fintech news covering the emerging Financial Technology services sector

Fintech

LIVR

Did Aping Warren Buffett And Hedge Fund Managers Bring Success To This AI-Powered ETF That Launched Last Week?

The stubborn inflationary pressure that<a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead"> kept the Federal Reserve in abeyance until earlier this month </a>could be a thing of the past but another risk could supersede it, an economist said on Monday.
What Happened: The artificial intelligence technology is a &#8220;deflationary nuclear bomb,&#8221; said prominent investor and macroeconomist Raoul Pal. &#8220;The cheaper it gets, the cheaper everything gets… electricity is the other one,&#8221; he said.
He also said, &#8220;We are reaching the deflationary tipping point there too, which accelerates AI…which accelerates cheaper energy and compute…,&#8221; he said.
Pal&#8217;s comments came in response to a post by a social-media user in which he quoted comments from Dane Vahey, Head of Strategic Marketing at OpenAI. The executive said in a presentation that the cost per million tokens fell from $36 to 25 cents in the past 18 months. &#8220;AI has been the greatest cost-depreciating technology ever invented,&#8221; he said.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As I've said, AI is a deflationary nuclear bomb. The cheaper it gets, the cheaper everything gets… electricity is the other one. No one believes it now but we are reaching the deflationary tipping point there too, which accelerates AI…which accelerates cheaper energy and… <a href="https://t.co/Qa6yjKiAPx">https://t.co/Qa6yjKiAPx</a>
&mdash; Raoul Pal (@RaoulGMI) <a href="https://twitter.com/RaoulGMI/status/1838406207641653606?ref_src=twsrc%5Etfw">September 24, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<figcaption class="wp-element-caption"> See Also: <a href="https://www.benzinga.com/money/best-artificial-intelligence-stocks">Best AI Stocks</a> Why It&#8217;s Important: A similar<a href="https://www.forbes.com/sites/sergeiklebnikov/2023/10/04/cathie-wood-predicts-ai-will-lead-to-deflation-and-drive-markets-higher/"> view </a>was expressed by Ark Invest founder Cathie Wood at a Forbes conference late last year. The fund manager mentioned AI as a source of deflation. Sun Microsystems co-founder Vinod Khosla said in a December tweet, &#8220;AI should be hugely deflationary over twenty-five years.&#8221;</figcaption></figure>
Khosla, who is also a venture capitalist, having invested in OpenAI, said the current measures of GDP and economy will be less relevant but goods and services in great abundance. 
AI and automation can perk up productivity and efficiency, thereby enabling producers to meet consumer demand without a concomitant increase in prices.
Robots are now being manufactured on a large scale and have various use cases across the manufacturing industries. Elon Musk&#8217;s Tesla is developing a humanoid robot called Teslabot. On the second-quarter earnings call, Musk said the potential that general-purpose humanoid robots offer is several times that of the $5 trillion opportunity for robotaxis.
Apart from keeping prices, artificial general intelligence will also boost GDP, Ark Invest&#8217;s Wood said back in early 2022 &#8211; a time when the AI revolution was yet to kickstart. A breakthrough in AGI will lead to the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/05/27339602/cathie-wood-has-cure-for-sagging-gdp-growth-sees-this-technology-accelerating-annua">acceleration of GDP within the next six to 12 years,</a> she said, adding that GDP growth will increase from the 3-5% year-over-year rate currently to 30-50% per year.
On the flip side, there are worries that the benefits of AI would come at the expense of humans and could lead to large-scale job losses.
In premarket trading on Tuesday, the Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) edged up 0.11% at $36.16, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data. </a>The Global X Robotics &amp; Artificial Intelligence ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>) was up a more modest 0.04% at $31.15.
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Image Via Shutterstock

Federal Reserve

A 'Deflationary Nuclear Bomb' Is Ticking, Warns Economist, Even As Inflation Risks Wane: 'Cheaper It Gets, Cheaper Everything Gets'

Alibaba Group Holding&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Taobao and Tmall e-commerce platforms have started accepting payment from rival Tencent Holding&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) WeChat app in September, CNBC <a href="https://www.cnbc.com/2024/09/04/alibaba-to-allow-payment-through-tencents-wechat-pay-on-e-commerce-apps.html" target="_blank" rel="noreferrer noopener">cites</a> a familiar source. 
The move reflects Alibaba&#8217;s attempts to trigger growth in its China e-commerce business, which intense domestic competition and price wars have battered. Alibaba stock is down 13% in the last 12 months.
Alibaba&#8217;s move has the potential to help it expand its market share in less developed parts of China, CNBC cites the source.
So far, Alibaba&#8217;s Chinese e-commerce sites have promoted Alipay, a preferred payment method of its fintech affiliate Ant Group. WeChat has over 1.3 billion users globally, most of whom are in China.
Last week, Alibaba scored a big win by <a target="_blank" href="https://www.benzinga.com/government/24/08/40650893/alibaba-clears-3-year-regulatory-antitrust-scrutiny-stock-gains" rel="noreferrer noopener">bagging a clean chit</a> from the Chinese market regulator, signaling the completion of a&nbsp;three-year regulatory crackdown.
Also, Taobao and Tmall Group&nbsp;created a new <a target="_blank" href="https://www.benzinga.com/news/24/09/40708358/alibabas-taobao-and-tmall-launch-new-tech-venture-eyeing-global-market-growth" rel="noreferrer noopener">&#8220;digital technology&#8221; company</a> to focus on importing and exporting goods, selling food and daily groceries, household appliances, and technology-related services.
In August, Alibaba reported a fiscal first-quarter topline growth of 4% year-on-year to $33.47 billion, missing the analyst consensus of $34.81 billion. Taobao and Tmall Group revenue decreased by 1% to $15.60 billion.
Investors can gain exposure to Alibaba Group through Avantis Emerging Markets Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVEM#NYSE">AVEM</a>) and Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>).
Price Action: BABA stock traded lower by 0.34% at $82.19 premarket at the last check Thursday.
Photo Via Shutterstock

TCEHY

Alibaba's E-Commerce Platforms Now Accept WeChat Payments, Aiming for Market Expansion in China

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