British Prime Minister Keir Starmer will host U.S. President Donald Trump at Chequers on Thursday for talks on trade and security. But the headlines aren't only political: America's biggest tech firms are backing up the state visit with a wave of fresh investment.
In tandem with Trump's arrival, U.S. companies pledged £31 billion ($42 billion) in UK tech commitments, led by Microsoft Corp's (NASDAQ:MSFT) £22 billion ($30 billion) push into artificial intelligence, quantum computing, and nuclear power, and Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) £5 billion ($6 billion) plan to expand AI data centers and fund its DeepMind research unit.
However, for shareholders of AI- and cloud-centric ETFs, the news still hasn’t translated into meaningful returns…yet.
A few U.S.-listed funds with significant exposure to Alphabet and Microsoft have scarcely moved. The Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ), which includes Alphabet among its top holdings, remains largely unchanged on Wednesday.
Similarly, the Roundhill Generative AI & Technology ETF (CHAT), which provides concentrated exposure to AI giants, has yet to experience significant gains. Even more general tech funds, such as the Microsoft-heavy Invesco QQQ Trust (NASDAQ:QQQ) and the Alphabet-heavy Vanguard Communication Services ETF (NYSE:VOX), sit unmoved.
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Apart from currently focusing on the consequences of the 25 bps rate cut by the Fed, the subdued response highlights a larger theme: the investment may be enormous in size and scope, but the ETF market is gazing beyond one company’s announcement and considering the larger AI landscape, which is controlled by U.S. infrastructure buildouts and chip demand.
Alphabet’s Waltham Cross data center and DeepMind research investment may not shift ETF prices today, but they do validate the longer-term story driving these funds.
For investors looking to catch that wave, ETFs like WisdomTree Cloud Computing ETF (NASDAQ:WCLD) and the iShares Semiconductor ETF (NASDAQ:SOXX) provide complementary exposure. Cloud ETFs will reap the benefits as Alphabet’s AI-driven services like Google Cloud and Workspace grow in demand, while semiconductor ETFs continue to be essential to energize the underlying chips that make such dreams possible.
Politically, the move by Alphabet is also well-timed. It came just before President Donald Trump‘s state visit to Britain, presenting a symbolic “vote of confidence” in the U.K. economy.
But market-wise, the short-term narrative is restrained. AI and cloud ETFs might be “buffering” for the moment, but if the U.S. tech giants’ billions drive breakthroughs in generative AI and cloud takeup, such funds could turn out to be the ultimate winners.
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