This ETF Could Be a Great Contrarian Artificial Intelligence (AI) Buy Right Now

▤ Summary

The iShares Expanded Tech-Software Sector ETF (IGV) has fallen roughly 18% from its high amid investor fears that generative AI will displace enterprise software. Revenue growth among the fund's components remains relatively strong, and many software vendors are integrating AI features that can expand use cases and revenue per seat. Major holdings such as Microsoft, Palantir, and Oracle drive a large portion of the ETF while other enterprise names like Salesforce, Intuit, and Adobe have seen valuation pressure. For investors who view current sentiment as overblown, the piece argues this ETF could be a contrarian way to gain exposure to beaten-down software names benefiting from AI integration.

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