How non-tech companies are deploying cutting-edge solutions

Key takeaways:

• Some investors may think of the Nasdaq-100 as a tech-heavy index, but innovation extends far beyond Silicon Valley.
• From AI-driven logistics to smart infrastructure, non-tech companies are embracing cutting-edge solutions to help drive growth and efficiency.
• For investors looking for exposure to companies at the forefront of disruption—inside and outside the traditional tech sector—Invesco QQQ offers exposure to many of these market leaders.

Innovation goes beyond the tech sector

Some investors may think of the Nasdaq-100 Index as a tech-heavy index, but innovation extends far beyond Silicon Valley. Companies across industries—including consumer goods, health care, industrials, and telecommunications—are leveraging advanced technology to enhance operations, improve efficiency, and stay ahead in a rapidly changing landscape.

From logistics driven by artificial intelligence (AI) to smart infrastructure, non-tech companies in Invesco QQQ—which tracks the Nasdaq-100—are embracing cutting-edge solutions to help drive growth. Here’s how some of them are reshaping their industries.

Consumer brands optimizing operations

• Starbucks has been at the forefront of digital transformation in the food and beverage industry. The company uses AI-powered predictive analytics to track customer preferences, optimize inventory, and reduce food waste. Deep Brew, Starbucks’ AI-powered platform, enhances decision-making in store operations, while Mobile Order & Pay and voice-enabled ordering with Alexa and Google Assistant continue to improve convenience and customer engagement.
• Costco employs automation and data-driven strategies to streamline its massive supply chain. The retailer uses advanced logistics software to manage inventory across its global warehouse network, helping ensure products are available where and when customers need them. Costco's Kirkland Signature brand benefits from machine learning-driven pricing strategies, while its warehouse robotics improve efficiency in high-demand fulfillment centers.
• Marriott International is redefining hospitality through digital innovation. The company has introduced AI-driven virtual assistants that provide guests with personalized recommendations, helping to enhance their overall stays. The Marriott Bonvoy app enables mobile check-in, keyless entry, and room customization, while the Internet of Things (IoT) enabled “smart hotel rooms” allow guests to control lighting, temperature, and entertainment through a mobile app or voice commands. 

Health care companies transforming patient care

Medical innovation isn’t limited to pharmaceutical breakthroughs—companies are deploying cutting-edge digital solutions to improve patient outcomes.

• Dexcom has improved diabetes management with its continuous glucose monitoring (CGM) technology. The company’s wearable sensors provide real-time blood sugar data, allowing users and health care providers to make informed treatment decisions. By integrating cloud-based tracking and AI-powered analytics, Dexcom is enhancing remote patient monitoring and empowering individuals to better manage their health.
• Biogen is leveraging AI and data science to drive breakthroughs in neurology. The company uses machine learning to analyze vast datasets, accelerating the discovery of new treatments for Alzheimer’s, multiple sclerosis, and other neurological disorders. Through strategic partnerships, Biogen is also developing digital biomarkers, helping to personalize treatments and improve patient outcomes.

Industrials enhancing logistics and automation

Advanced technology is helping industrial companies increase efficiency and sustainability in their operations.

• Honeywell integrates artificial intelligence and the IoT into industrial processes to enhance operational efficiency. The company’s AI-driven predictive maintenance systems help identify potential equipment failures before they occur, helping to decrease downtime and improve productivity. Additionally, Honeywell is advancing automation in energy management, giving businesses the opportunity to optimize power usage and reduce costs.
• Old Dominion Freight Line is using real-time tracking and radio frequency identification (RFID) technology to improve the efficiency of freight transportation. The company’s automated dispatch system maintains that shipments are optimized for speed and cost-effectiveness, reducing delivery times. By embracing AI-powered logistics planning, Old Dominion has the potential to enhance route optimization, lower fuel consumption, and provide customers with greater shipment visibility.

Telecommunications shaping the future of connectivity

Faster, more reliable connectivity is critical for modern businesses and consumers, and leading telecommunication providers are pushing innovation forward.

• T-Mobile is expanding its 5G network to enable next-generation connectivity solutions. The company has been investing in ultra-fast, low-latency wireless infrastructure, which supports applications like autonomous vehicles, smart factories, and telemedicine. T-Mobile is also using AI to enhance network performance, dynamically adjusting bandwidth to meet real-time demand.

Utilities investing in smart infrastructure

Energy companies are adopting digital technology to build a more efficient and sustainable future.

• American Electric Power is modernizing the energy grid with AI-powered predictive maintenance and smart grid technology. By deploying real-time data analytics, American Electric Power is working to improve grid stability and reduce the risk of outages. The company is also investing in renewable energy solutions, using AI-driven forecasting to optimize wind and solar power integration.

A broader view of innovation

Innovation is not just about software and semiconductors. Companies in the Nasdaq-100 across multiple sectors are redefining what it means to be forward-thinking, embracing technology to drive competitive advantages.

For investors looking for exposure to companies at the forefront of disruption—inside and outside the traditional tech sector—Invesco QQQ provides exposure to many of these market leaders.