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The AI Investing Pulse

June 12, 2025

In this Week’s Edition:

1. Analysis - 2025 AI ETF Success Stories: The Top 3 Performers

2. Stock Ideas - Wall Street Next Monster AI Software Stock

3. News - Retail Investors Are Buying AI Stocks, but not the Ones they Used to

4. Startups - Why 99% of AI Startups Will be Dead by 2026

5. Trends - Humanoids Will be the Next Phase of AI

6. Other News - Google AI’s AI Tools are Crushing Publisher Traffic

2025 AI ETF Success Stories: The Top 3 Performers

This week, we turn our attention to three standout exchange-traded funds (ETFs) from our ETF list that have successfully captured the momentum of the AI revolution and delivered top-tier performance in 2025. Year to date, they are among the strongest performers in the space.

These ETFs offer diversified exposure to different facets of the AI landscape, making them compelling vehicles for investors looking to capitalise on this transformative technology.

CHAT – Roundhill Generative AI & Technology ETF

Year to Date Performance (YTD): 11.8%

The Roundhill Generative AI & Technology ETF $CHAT ( ▲ 0.12% ) is the world’s first Generative AI ETF and is actively managed. It targets companies developing, training, and commercialising large language models (LLMs), building generative AI applications, and supplying the hardware and cloud infrastructure that supports them.

💡 Why CHAT?

CHAT offers a focused approach to the rapidly evolving generative AI space:

• Generative AI Revolution: AI-driven tools are reshaping enterprise productivity, decision-making, and operational efficiency.

• Economic Impact: The adoption of AI technologies continues to enhance business performance globally — they are no longer just buzzwords.

• Rapid Adoption: Applications like ChatGPT have set usage records, with over 100 million users, showcasing the explosive demand for generative AI.

🔝 Top 5 Holdings - (33 holdings)

• NVIDIA Corp. (NVDA) – 8.12%

• Microsoft Corp. (MSFT) – 6.45%

• Alphabet Inc. (GOOGL) – 6.23%

• Meta Platforms Inc. (META) – 4.73%

• Tencent Holdings Ltd. – 4.41%

AIQ – Global X Artificial Intelligence & Technology ETF

Year to Date Performance (YTD): 9%

The Global X Artificial Intelligence & Technology ETF $AIQ ( ▼ 0.16% ) seeks to invest in companies expected to benefit from the ongoing development and deployment of AI in their products, services, or operations. AIQ tracks the Indxx Artificial Intelligence & Big Data Index and follows an unconstrained global strategy, allocating across geographies, sectors, and company sizes.

💡 Why AIQ?

AIQ presents several compelling reasons for investors to consider it:

• High Growth Potential: The global AI market is forecast to grow from $184 billion in 2024 to $826.7 billion by 2030, driven in part by generative AI.

• Rapid Commercialisation: AI is revolutionising sectors like agriculture and healthcare. By 2030, more than 729 million people are expected to use AI tools — up from 254 million in 2023.

• Unconstrained Approach: AIQ’s flexible strategy allows it to invest in both household names and emerging innovators worldwide, reflecting the broad scope of the AI opportunity.

🔝 Top 5 Holdings - (85 holdings)

• Tencent Holdings Ltd. – 3.93%

• Netflix Inc. (NFLX) – 3.56%

• Alibaba Group (BABA) – 3.42%

• Palantir Technologies (PLTR) – 3.42%

• Samsung Electronics – 3.39%

THNQ – ROBO Global Artificial Intelligence Index ETF

Year to Date Performance (YTD): 7.4%

The ROBO Global Artificial Intelligence ETF $THNQ ( ▲ 0.65% ) offers a comprehensive and transparent benchmark that represents the global AI value chain. Companies are selected from 11 AI subsectors based on revenue contribution, market leadership, and innovation, with inclusion based on a minimum “Theme Score” of 50.

💡 Why THNQ?

THNQ offers investors a compelling case for exposure to AI:

• Industry Expertise: The fund is guided by industry specialists in robotics, artificial intelligence, and healthcare technology, whose mission is to define and curate the global AI investment universe.

• Significant Market Growth: Global revenues from the generative AI market are projected to exceed $1 trillion by 2032, with infrastructure expected to be the dominant area of spend.

• Multi-Cap Diversification: THNQ includes large-, mid-, and small-cap companies, providing diversified access with minimal overlap with mainstream equity indices.

🔝 Top 5 Holdings - (54 holdings)

• Cloudflare Inc. (NET) – 2.73%

• CrowdStrike Holdings Inc. (CRWD) – 2.70%

• Samsara Inc. (IOT) – 2.69%

• Nebius Group N.V. (NBIS) – 2.57%

• NVIDIA Corp. (NVDA) – 2.45%

Each of these ETFs — THNQ, CHAT, and AIQ — represents a distinct approach to investing in artificial intelligence. THNQ provides structured, multi-cap exposure to the broader AI value chain, while CHAT delivers a high-conviction, thematic focus on generative AI. AIQ, on the other hand, offers global, unconstrained access to both established pioneers and emerging innovators within the AI space.

Together, they give investors diversified, forward-looking exposure to one of the most dynamic and transformative investment themes of the decade.

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_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

_{Source: YTD Performances: Finbox (S&P Global Intelligence). THNQ Factsheet, 10 June 2025, CHAT Factsheet, 31 March 2025, AIQ Factsheet, 10 June 2025}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS 

Wall Street Next Monster AI Software Stock - Yahoo Finance

2 AI Stocks Set to Dominate the Next Decade - The Globe and Mail

The Smartest AI Stocks - Yahoo Finance

AI STOCKS & ETFs NEWS 

Retail Investors are Buying AI Stocks, but not the Ones They Used to - Investopedia - Retail investors are increasingly investing in AI stocks, shifting their focus from traditional favourites to a broader range of AI-related companies.

Are Coreweave and Palantir the New Meme Stocks? - TradingView - CoreWeave and Palantir have seen dramatic stock surges driven by retail investor interest in AI. Analysts caution about their inflated valuations amid concerns of potential market corrections reminiscent of past meme stock phenomena. 

Constellation Energy Stock (CEG) Eyes Atomic Expansion - Yahoo Finance - Constellation Energy reported decreasing GAAP net income but rising adjusted earnings. A new power purchase agreement with Meta supports clean energy while analysts predict an 11.75% stock rise by July 2025 despite mixed growth signals.

AI STARTUPS

Why 99% of AI Startups Will Be Dead by 2026, According to Srinivas Yao - Medium - AI startups face immense challenges including intense competition, regulatory hurdles, and evolving market dynamics, leading to high failure rates and predictions that most won't survive by 2026.

IonQ Stock Unveils UK Oxford Ionics Acquisition, Nvidia Quantum Collaboration - Investopedia - IonQ has acquired Oxford Ionics for $1.08 billion to enhance fault-tolerant quantum computing and announced collaborations with Nvidia and others for accelerated drug development using quantum technology.

Tech Stocks Inch Up as Meta Reportedly Nears Multibillion-Dollar AI Investment - msn - Meta is close to a multibillion-dollar investment in AI, part of a broader trend among tech giants, with projected spending on AI and data centres exceeding $320 billion by 2025.

AI TRENDS

Humanoids Will Be the Next Phase of AI, This is How to Train a Robot according to Nvidia - msn - NVIDIA is enhancing humanoid robot development with AI tools like the Isaac GR00T N1 model, utilising synthetic data and collaboration with partners to improve training and real-world application capabilities.

AI is India’s Next Growth Engine, Market Set to Reach $17 Billion by 2027 - abp - India's AI market is expected to triple, reaching $17 billion by 2027, driven by enterprise investments, a growing workforce, and advanced digital platforms, positioning AI as essential for business success.

OTHER

Google AI’s AI Tools Are Crushing Publisher Traffic - NewsBytes - Google’s AI Overviews have significantly reduced publisher traffic, with a reported 34.5% drop in clicks for informational queries. This trend raises concerns about the sustainability of journalism and the open web.

How Grok's X Integration Powers Real-Time Crypto Market Newsletters for Traders - Blockchain - Grok's integration with X enables traders to create real-time crypto market newsletters, providing rapid access to market developments and sentiment shifts essential for informed trading decisions.

AI Stock Analyst Analysis Outperforms Human Mutual Fund Managers - News Stanford - A Stanford study reveals an AI system outperformed human mutual fund managers over 30 years, producing 600% higher returns on average. The AI's potential in enhancing investment outcomes significantly challenges traditional management strategies.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}