Siri to Get Smarter With Gemini: The ETF Playbook for Investors

In a surprising turn of the artificial intelligence (AI) arms race, tech titans Apple AAPL and Alphabet GOOGL have recently announced a landmark multi-year partnership, through which Google’s Gemini 3 AI models will get integrated into the Apple ecosystem. In particular, this partnership is aimed at revolutionizing Apple’s Siri, transforming it from a basic voice assistant into a sophisticated, generative AI powerhouse. 

For Apple, this deal represents a strategic shift, considering it has been struggling to develop competitive AI capabilities internally. For Alphabet, this agreement adds another feather to its valuation hat. Following the partnership announcement, the company’s share price appreciation pushed its market capitalization to $4 trillion for the first time in intraday trading on January 12, 2026, making it the fourth publicly traded company to reach this milestone after Nvidia NVDA, Microsoft MSFT and Apple did so last year (data as per CNN Business’ report). 

Financially, this deal creates a win-win situation for both companies: Alphabet gains a massive licensing stream (estimated at $1 billion annually) and access to 2 billion active Apple devices, while Apple saves billions in R&D and infrastructure costs. 

For investors, this creates a unique situation where two of the world's most valuable companies have become intertwined in the AI race. So, rather than betting on one tech giant over the other, or investing in both individually, technology-focused exchange-traded funds (ETFs) will provide diversified exposure to this historic synergy while mitigating the risks of individual stock volatility.

Rationale Behind the Partnership

The latest partnership between these two tech competitors represents a strategic pivot born of necessity and mutual interest in the rapidly evolving AI landscape. Despite its scale, Apple has been visibly lagging in the generative AI frontier, repeatedly delaying a major Siri overhaul and the rollout of Apple Intelligence into 2026, after earlier plans were pushed back to 2025. 

In contrast, Alphabet has been spearheading the AI race.  The December 2025 launch of Gemini 3 Flash and Pro demonstrated PhD-level reasoning and a commanding lead in benchmarks like GPQA Diamond (scoring 91.9%). Alphabet has also successfully integrated Gemini into Android Auto, creating an EV-focused, conversational AI experience for drivers. 

Amid this backdrop, this partnership represents a pragmatic solution for both tech giants. Apple gains access to cutting-edge AI technology without the immense costs of developing and maintaining its own large language models, saving it tens of billions in data center infrastructure.

For Google, the deal represents what Wedbush Securities analyst Dan Ives called a "major validation moment," potentially giving its Gemini technology access to over a billion Apple devices while generating significant revenues through what likely will be a continuation of their existing search partnership.

Also, by plugging Gemini into hundreds of millions of Apple devices, Google can scale usage, data and enterprise demand for its AI stack, reinforcing its leadership narrative versus OpenAI and other rivals.

Tech ETFs to Buy

While the Apple-Alphabet partnership deal should boost both stocks’ valuation, owning individual shares carries concentrated risks. For instance, AAPL investors have faced concerns over a "brand dilution" risk as it relies on a rival’s tech, alongside a cooling iPhone upgrade cycle.

Meanwhile, Alphabet investors weigh its $4 trillion valuation against staggering capital expenditures, which hit a record $91 billion in 2025, and ongoing antitrust scrutiny regarding its search dominance.

Thus, investing in broad tech ETFs, like those mentioned below, that hold both Apple and Alphabet, alongside other large-cap tech leaders like NVDA, MSFT, and Broadcom AVGO, will allow you to capture the growth of this partnership while diversifying the risk of owning a single stock with the wider innovation cycle in chips, infrastructure and AI applications.

iShares U.S. Technology ETF IYW

This fund, with net assets worth $20.83 billion, offers exposure to 141 U.S. electronics, computer software and hardware, and information technology companies. Of these, AAPL holds the second position, with 14.55% weightage in this fund, while GOOGL holds the sixth position, with 2.63% weightage. Its top five holdings include NVDA (16.61%), MSFT (13.38%), META Platform META (3.25%), and AVGO (3.13%), apart from AAPL. 

IYW has rallied 24.7% over the past year. The fund charges 38 basis points (bps) as fees. 

iShares Expanded Tech Sector ETF IGM

This fund, with net assets worth $8.93 billion, offers exposure to 291 technology-related companies from the communication services and consumer discretionary sectors. Of these, AAPL holds the third position, with 8.09% weightage in this fund, while GOOGL holds the fifth position, with 5.03% weightage. Its top five holdings include NVDA (8.73%), MSFT (8.49%) and AVGO (7.41%), apart from Apple and Alphabet. 

IGM has surged 26.6% over the past year. The fund charges 39 bps as fees. 

Global X Artificial Intelligence & Technology ETF AIQ

This fund, with net assets worth $7.82 billion, offers exposure to 86 companies that potentially stand to benefit from the further development and utilization of AI technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data. Of these, GOOGL holds the second position, with 4.56% weightage in this fund, while AAPL holds the ninth position, with 3.13% weightage. Its top five holdings include Samsung Electronics (5.09%), Advanced Micro Devices (AMD) (3.64%), Alibaba (BABA) (3.58%) and Taiwan Semiconductor TSM (3.51%), apart from Alphabet. 

AIQ has gained 34.4% over the past year. The fund charges 68 bps as fees. 

Roundhill Magnificent Seven ETF MAGS

This fund, with assets under management (AUM) worth $4.18 billion, offers exposure to the Magnificent Seven stocks. Of these, GOOGL holds the first position, with 15.53% weightage in this fund, while AAPL holds the fifth position, with 13.82% weightage. 

MAGS has soared 17.1% over the past year. The fund charges 29 bps as fees. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research