A specialist exchange-traded fund (ETF) wealth manager has noted companies involved in the artificial intelligence (AI) sector have experienced exceptional performance in September, but has expressed concerns a large number of Australians are missing out on investment opportunities these organisations are currently presenting.
Global X senior investment strategist Billy Leung identified China-based technology company Alibaba as the strongest performer after the value of its shares jumped by 31 per cent over the month to 15 September, making it the strongest stock on Hong Kong’s Hang Seng Index.
Leung pointed out the development of a computer chip designed to replace those made by Nvidia to run AI models was a key driver of this increase in the company’s share price.
However, he acknowledged other companies had also prospered in the first half of this month.
“In the US, we have also seen Broadcom shares surge around 19 per cent over the month to September 15, along with Oracle and Alphabet,” he said.
“Broadcom is up an astounding 120 per cent in total returns over the past year to 15 September, compared to Nvidia’s 49 per cent over the same period, and for good reason; it is estimated that more than 99 per cent of all internet traffic crosses at least one Broadcom chip, Broadcom connects everything, it has emerged as a key enabler with switch silicon and networking chips critical to hyperscale AI clusters.”
On the back of this data, he suggested it is time for Australian investors to re-evaluate their portfolio exposure to the AI industry.
“It’s time for Australian investors to ask themselves can they keep ignoring significant growth in these global AI market leaders? The answer to that question could be no. For wealth generation, an exposure to these five companies could be a key step towards creating significant wealth over the long term,” he indicated.
The Global X Artificial Intelligence ETF, trading under the Australian Securities Exchange ticker GXAI, offers domestic investors access to AI companies including Oracle, Alibaba, Broadcom, Alphabet and Nvidia.
“Artificial intelligence spans multiple segments and its most important enablers include these five companies and other digital enablers from around the world. GXAI invests accordingly and is unconstrained with respect to sector and geography, aiming to create wealth from the quickly expanding AI sector and AI adoption,” he explained.
“By 2031, it has been projected that around 1.1 billion people worldwide will be using AI tools directly, a massive increase from roughly 350 million users in 2025. The latest forecasts keep rising as AI adoption accelerates, transforming daily living, work and society for an increasing proportion of the world’s population.”