Dan Ives discusses the launch of a new AI-focused ETF designed for long-term investors, highlighting its evolving nature and the growing global interest in AI investments. He emphasizes the sector’s strong growth prospects, the increasing adoption of ETFs in the AI boom, and Apple’s strategic potential, positioning the ETF as a democratizing tool for retail investors to participate in the AI revolution.
In the video, Dan Ives discusses the launch of a new ETF focused on artificial intelligence (AI), emphasizing its long-term investment approach rather than frequent trading. He describes the ETF as a “living organism” that will evolve over time, reflecting ongoing developments in the AI revolution. Ives highlights that the ETF is designed for investors with a long-term perspective, though he acknowledges that changes in the market or technology landscape could influence its composition.
Ives elaborates on the growth prospects of the tech sector, asserting that the current environment is characterized by acceleration rather than decline. He believes that the market is underestimating the growth potential of technology companies, with estimates of tech growth being conservative by 300 to 500 basis points for the remainder of the year. He points to strong spending trends and the strategic position of companies like Microsoft, which he predicts could see its stock rise significantly, potentially reaching $550 to $600.
The conversation also touches on the broader adoption of ETFs in the investment community, especially in relation to AI. Ives notes that this trend is one of the most significant in decades, transforming the investment climate by increasing risk appetite and enabling investors to participate in the AI boom. He emphasizes that both operational use cases and investor interest are driving this shift, with global appetite for AI investments growing rapidly. The ETF is positioned as a way for retail investors to access and benefit from this technological revolution.
Regarding Apple, Ives discusses its unique position among major tech companies, particularly in relation to its financial performance and potential growth. He suggests that Apple’s free cash flow is likely underestimated and that its upcoming strategies, especially around AI and developer engagement, will bolster its growth. Despite current challenges, such as geopolitical tensions and tariffs, Ives believes that Apple’s growth trajectory will rebound, and the company’s upcoming plans will provide clarity and momentum for investors.
Finally, Ives explains that the AI-focused ETF was launched recently and is targeted at retail investors worldwide. The ETF is built on analyst research, making it a novel vehicle that allows investors to directly play the AI theme based on expert insights. He emphasizes that the ETF does not alter his day-to-day role as a portfolio manager but rather enhances it by providing a structured way to implement research-driven investment strategies. Overall, the ETF represents a significant step in democratizing access to AI investment opportunities.