The Simplest Way to Invest in the AI Revolution Is Hiding in Plain Sight

In November 2022, OpenAI released GPT-3.5. This was a watershed moment, as the chatbot amassed 100 million monthly active users in just two months.

This kicked off the artificial intelligence (AI) cycle. Companies involved in this technological shift have generally been rewarded by the market with huge returns. And given that Nvidia's management predicts $3 trillion to $4 trillion in annual AI infrastructure spending by 2030, this trend doesn't appear to be slowing down.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.

For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Do you want to invest in the AI revolution? The simplest way to do so might be hiding in plain sight.

Image source: Getty Images. This tech-heavy ETF has performed extremely well Investors looking for a hassle-free way to gain exposure to the AI trade should take a look at the Invesco QQQ Trust (NASDAQ: QQQ). It tracks the performance of the largest 100 nonfinancial companies that trade on the Nasdaq exchange, otherwise known as the Nasdaq-100 index.

It's much more concentrated than the popular S&P 500 benchmark, and there's a focus on technology names. The top positions in this exchange-traded fund (ETF) sit right at the center of the AI boom. Nvidia, which has more than 80% share of the market for data center graphics processing units, represents 8.

1% of the portfolio. The hyperscalers -- Alphabet, Microsoft, Amazon, and Meta Platforms -- combine to make up 18.4% of the ETF.

And thanks to surging demand for memory and storage, Micron Technology has risen to become the third-biggest holding. All of these businesses have benefited from the AI wave, directly propelling the Invesco QQQ Trust. In the past three years, this ETF has produced a fantastic total return of 92% (as of July 22), and the expense ratio of 0.

18% isn't steep. AI presents a risk and an opportunity The most obvious risk with the ongoing AI revolution is that the spending that's taking place will taper off. The analyst community projects Amazon's free cash flow, for instance, will be negative in 2026.

And Alphabet just upped its planned capital expenditures (capex) yet again. And returns might not be high enough to justify the huge capex. This is the most important question facing the market and economy.

Any sign of weakness can send this ETF tumbling. But AI is also an exciting opportunity for investors to tap into here. If this technology eventually ushers in a new era of productivity gains, something the bulls are sure will happen, then it bodes well for the Invesco QQQ Trust.

Story Continues Should you buy stock in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them.

The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $377,990!

* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,269,518!* Now, it's worth noting Stock Advisor's total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500.

Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 25, 2026. Neil Patel has positions in Invesco QQQ Trust.

The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. The Simplest Way to Invest in the AI Revolution Is Hiding in Plain Sight was originally published by The Motley Fool In November 2022, OpenAI released GPT-3.

5. This was a watershed moment, as the chatbot amassed 100 million monthly active users in just two months. This kicked off the artificial intelligence (AI) cycle.

Companies involved in this technological shift have generally been rewarded by the market with huge returns. And given that Nvidia's management predicts $3 trillion to $4 trillion in annual AI infrastructure spending by 2030, this trend doesn't appear to be slowing down. Missed Nvidia in 2009?

This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.

Continue » Do you want to invest in the AI revolution? The simplest way to do so might be hiding in plain sight. Image source: Getty Images.

This tech-heavy ETF has performed extremely well Investor