ETFs to Watch as SoftBank Eyes $1T Arizona AI hub

With the global AI market projected to surpass $1 trillion by 2031, the field is emerging as an increasingly attractive investment opportunity. According to Statista, the U.S. AI market is expected to witness a CAGR of 26.95% from 2025 to 2031, reaching a valuation of $309.7 billion by 2031, cementing its position as the largest AI market globally.

In addition to the optimistic growth forecasts, President Trump has repeatedly emphasized his ambition to make the United States the global leader in AI. This stance further reinforces the country’s position as an ideal destination for AI-related investments.

According to Bloomberg News, as quoted on Reuters, Masayoshi Son, the founder of SoftBank, is proposing a $1 trillion complex in Arizona focused on developing robotics and AI technologies.

This is in addition to President Trump’s announcement in late January regarding ‘Stargate,’ a $500 billion private-sector investment aimed at building AI infrastructure in the United States, with Oracle, OpenAI and SoftBank as key players in the joint venture.

Inside the $1 Trillion Proposal

As per the reports, Son is looking to partner with Taiwan Semiconductor Manufacturing TSM for the project, aiming to revive high-end tech manufacturing in the United States and replicate the scale and efficiency of China’s Shenzhen industrial hub. This aligns with President Trump’s push to bring manufacturing back to the country.

Masayoshi Son is also in discussions with major tech companies to bring them on as potential investors. According to Yahoo Finance, Son is lining up the key Vision Fund portfolio firms to take part in the proposed initiative.

However, according to the New York Post, the plan largely depends on the Taiwanese company agreeing to the proposal and backing from the Trump administration and state officials. Moreover, the plans remain in the early stages and are subject to change.

ETFs to Explore

Below, we highlight funds that investors may consider to capitalize on the ambitious proposal.

AI ETFs

Increasing exposure to AI-focused funds presents a compelling opportunity for investors, as initiatives ramp up the momentum behind the AI and Tech market in the United States. These developments, along with robust market forecasts, make AI and tech-related ETFs a strategic addition to portfolios with long-term investment horizons.

Investors can consider iShares U.S. Technology ETF IYW, Fidelity MSCI Information Technology Index ETF FTEC, Global X Artificial Intelligence & Technology ETF AIQ and Global X Robotics & Artificial Intelligence ETF BOTZ.

Uranium ETFs

Surging AI use is driving the demand for data center capacity. Uranium demand is poised to surge, driven by increasing nuclear adoption to power energy-hungry data centers and tech companies looking to meet clean energy goals.

With an increasing focus on nuclear energy and uranium demand set to grow substantially, uranium ETFs are also an appealing strategic portfolio addition for the long term.

Investors can consider Global X Uranium ETF URA, VanEck Uranium+Nuclear Energy ETF NLR, Sprott Junior Uranium Miners ETF URNJ and Themes Uranium & Nuclear ETF URAN to capitalize on the uranium market's upside potential.

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

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