Why QQQ Remains a Popular Proxy for AI-Driven Growth

With numerous companies offering exposure to the rapidly expanding artificial intelligence (AI) industry, it can be overwhelming -- for both novice and experienced investors alike -- to identify individual stocks that quench their thirst for AI exposure. From leading semiconductor stocks to data center powerhouses, there's no shortage of considerations.

But the Invesco QQQ Trust (NASDAQ: QQQ) does the heavy lifting. The exchange-traded fund (ETF) is loaded with the most popular AI names, and investing in the fund provides a simple way to gain ample AI exposure.

Image source: Getty Images.

This ETF holds the usual suspects of AI leaders

As AI tools become increasingly prevalent in our daily lives, investors are recognizing the incredible opportunities that AI stocks now offer. According to The Motley Fool's 2026 AI Investor Outlook Report, for example, 93% of survey respondents expect to maintain or increase their exposure to AI stocks in 2026.

Nearly synonymous with the AI industry, semiconductor stalwart Nvidia holds the largest position in the Invesco QQQ Trust ETF, with a 9% weighting, and its semiconductor peer Broadcom, which is similarly benefiting from rapid AI growth, also finds itself among the 10 largest positions with a 3.3% weighting.

In addition to companies that help provide AI hardware, the ETF offers exposure to businesses that are paving the way forward with AI tools. The third and fourth largest positions, respectively, in the ETF are Apple, which offers Apple Intelligence, and Microsoft, the developer of Copilot, providing AI products that people use daily, both at home and in the office. Thanks to its partnership with OpenAI, Microsoft also provides investors with exposure to one of the most well-known names in the field of generative AI.

Thanks to Microsoft, investors also gain exposure to cloud computing, which is indispensable to the flourishing of the AI industry, thanks to Microsoft's Azure. But the cloud computing exposure doesn't end there. Alphabet, with Google Cloud, offers additional cloud computing exposure as the company's Class A and Class C shares represent a combined weighting of about 7%.

Excited about the prospect of investing in the Investo QQQ Trust, but concerned that exorbitant management fees will eat into your potential gains? Fret not. The fund has an extraordinarily low total expense ratio of 0.18%.

The new year is a great time to start a new position in the Invesco QQQ Trust

Sure, digging into individual AI leaders and then buying their stocks is a valid route to gaining AI exposure, but it takes a considerable amount of time -- something of which many of us are in short supply. It's not merely the time saved by investing in the Invesco QQQ Trust that many find alluring, though. Because the fund has 101 holdings, investors avoid the downside of an individual stock experiencing a steep decline. From saving time to mitigating risk to gaining broad exposure to various niches of the AI industry, it's no wonder AI investors are motivated to click the buy button on the Invesco QQQ Trust.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.