Alger AI Enablers & Adopters ETF

ALAI

Market cap $435M

New Chinese AI Model Kimi K3 is raising questions for established players. Investors are questioning whether AI industry still has pricing power.

AI is everywhere in the product. But revenue growth is decelerating, from 16% to 13% to 12% guided. The productivity benefits are arriving for users and end-consumers of AI, though it's not hitting the income statement (at least yet) for most companies.

During the first quarter of 2026, the Financials and Industrials sectors contributed to relative performance while Consumer Discretionary and Energy were among sectors that detracted from relative performance. Western Digital has structurally shifted toward cloud customers as consumer exposure has declined, with cloud representing the majority of Western Digital's revenue. Nebius Group announced a landmark multi-year infrastructure agreement with a major AI hyperscaler, significantly expanding its contracted backlog and validating its platform at scale.

Equities extend gains as earnings and semiconductors lead markets higher. Consumer confidence remains subdued despite economic resilience.

Last year's market surge wasn't built on hype. New research from Alger shows that AI spending and the accompanying infrastructure buildout drove corporate earnings higher, with fundamentals doing the heavy lifting rather than investor sentiment alone.

Investors are looking beyond semiconductor makers as companies across industries deploy artificial intelligence (AI) to transform their operations and products. Generative AI reached 50% of U.S. households in just three years, a speed that dwarfs every prior general-purpose technology, according to Alger's Winter 2026 Capital Markets presentation.

During the fourth quarter of 2025, the largest portfolio sector weightings were Information Technology and Communication Services. The largest sector overweight was Information Technology and the largest sector underweight was Financials. The Information Technology and Utilities sectors contributed to relative performance while Health Care and Industrials were among sectors that detracted from relative performance.

Major investments in AI infrastructure have some investors worried about corporate balance sheets, but new research from Alger shows today's buildout looks nothing like the debt-fueled telecom boom of the late 1990s.

We could very well be entering an unprecedented era of U.S. domestic business spending and investment in the years to come. Here's how.

The United States is preparing for an artificial intelligence (AI) infrastructure buildout that rivals the scale of World War II mobilization. Alger, a pioneer in growth-equity investing, predicts AI-related spending could reach 5.6% of U.S. gross domestic product (GDP) by the end of the decade.