The Nasdaq-100 Index provides exposure to some of the most innovative companies leveraging AI to drive their business forward.
We examine how four of the largest disruptors in the Nasdaq-100 — Alphabet, Adobe, Meta Platforms, and Nvidia — are positioned to take advantage of the AI revolution.
Alphabet (GOOGL)
Alphabet, the parent company of Google, is a leading player in AI with significant investments in machine learning. Google's AI initiatives are integral to its search engine algorithms, Google Assistant, and cloud computing services. For example, Google is tapping its own generative AI to help inform search results. Google Cloud AI includes analytical tools to develop machine learning models, automate work processes, and glean insights from data.
Also, Google's Tensor Processing Units (TPUs) are designed specifically for accelerating AI workloads and infrastructure. With its unparalleled access to data, Alphabet’s Google is poised to capitalize on demand for AI-powered solutions. The company has also proven its commitment to AI with rising capital expenditures in recent quarters, reflecting its confidence in the opportunities offered by AI across its businesses.3
Adobe (ADBE)
Software giant Adobe has integrated AI into its creative suite in an effort to boost productivity and customize the user experience. One example is Firefly, its AI-powered image generation tool that can integrate with Adobe Creative Cloud, the software suite for professional image and video editing. Adobe Sensei, the company's AI and machine learning platform, powers features across Adobe's products, including Photoshop, Illustrator, and Premiere Pro. Sensei automates repetitive tasks, offers intelligent editing suggestions, and improves content creation efficiency.
Adobe's AI-driven tools are widely used in digital marketing, enabling personalized customer experiences and data-driven decision-making. As the demand for digital content continues to rise, Adobe's AI innovations position it as a leader in the creative software industry, providing significant potential growth opportunities.
Meta Platforms (META)
Meta Platforms, Facebook’s parent company, is heavily invested in AI to enhance its social media platforms and develop new technologies. AI algorithms play a crucial role in content moderation, personalized content delivery, and advertising optimization on Facebook and Instagram.
Additionally, Meta's investments in the metaverse and virtual reality (VR) rely on AI to create immersive experiences and interactive environments. The company is accelerating its infrastructure investments to support its AI research and product development efforts.4
Nvidia (NVDA)
Nvidia is a leading force in semiconductors and the AI hardware market, offering crucial components for AI computing. The company’s graphics processing units (GPUs) are considered industry standard and widely used for training and deploying AI models.
A key part of Nvidia’s competitive moat is Cuda, its software platform that helps developers leverage the power of the company’s GPUs in their models. Nvidia has also introduced the Blackwell GPU, which is designed to meet the growing demand for AI computing power. With cutting-edge technology, strategic partnerships, and a significant head start, Nvidia is spearheading the AI revolution, driving innovation in both AI hardware and software.
Playing the AI trend with the Nasdaq-100
Alphabet, Adobe, Meta, and Nvidia are just some of the many companies in the Nasdaq-100 that are pushing the boundaries of AI in technology and other sectors like consumer discretionary, healthcare, and industrials. As AI continues to evolve, the Nasdaq-100 is a straightforward yet powerful way to get exposure to the increasing adoption of AI technologies.
Access the innovators of the NASDAQ with Invesco’s NASDAQ 100 Index Fund.