Three Leading ETFs I'm Eager to Invest in Heavily in 2026, Even with Numerous Affordable Stocks on My Watchlist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy AMD?
Source: NASDAQ.COM
Investment Strategy for 2026: The author plans to allocate half of their retirement contributions to ETFs in 2026, focusing on the Vanguard Russell 2000 ETF, Vanguard Real Estate ETF, and Ark Autonomous Technology & Robotics ETF as key investments.
Small Cap Stocks Outlook: Small cap stocks, particularly those in the Russell 2000 index, are currently undervalued compared to large caps, and lower interest rates in 2026 could help close this valuation gap.
Real Estate Investment Potential: The Vanguard Real Estate ETF is highlighted as a promising investment due to its exposure to REITs and a 4% dividend yield, especially as the real estate sector is expected to recover.
AI Investment via ETFs: The Ark Autonomous Technology & Robotics ETF is favored for its focus on smaller AI stocks, providing a way to invest in the AI revolution without extensive research on individual companies.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 202.680
Low
210.00
Averages
289.13
High
377.00
Current: 202.680
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
iShares Semiconductor ETF Averages 30% Returns Over a Decade
- Investment Return Potential: The iShares Semiconductor ETF has averaged a 30% annual return over the past decade, indicating that a $250,000 investment could grow to $1 million in the next ten years, showcasing its strong performance and growth potential in the semiconductor sector.
- Core Holdings Analysis: The ETF's largest holdings include Micron, Nvidia, and Advanced Micro Devices, which are critical suppliers of AI chips and components, with current demand for their products exceeding supply, driving their revenues and stock prices higher.
- Market Demand Drivers: With surging demand for semiconductors from the AI and cloud computing sectors, the iShares Semiconductor ETF has achieved a 12.8% compound annual return since its inception in 2001, with an accelerated annualized return of 30.1% over the last decade, reflecting the urgent need for high-performance chips.
- Future Outlook: Although future returns may slow, Nvidia CEO Jensen Huang predicts that data center operators could spend up to $4 trillion annually on infrastructure by 2030, providing strong support for the continued growth of the iShares ETF.
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- Surge in AI Hardware Demand: Companies like Nvidia, AMD, and Micron are pivotal suppliers in AI data center hardware, with current demand outstripping supply, driving their revenues and stock prices higher, indicating robust growth potential in the AI sector.
- Significant ETF Returns: The iShares Semiconductor ETF has achieved a compound annual return of 12.8% since its inception in 2001, with an accelerated annualized return of 30.1% over the past decade, demonstrating the semiconductor industry's growth fueled by cloud computing and AI demand, promising substantial returns for investors.
- Investment Growth Potential: Investing $250,000 in the iShares ETF could yield $1 million in under 6 years at a 30.1% annual return, showcasing the ETF's strong growth potential driven by AI hardware demand.
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- Revenue Expectations Surge: Arm anticipates total annual revenue of $25 billion, a sixfold increase from $4 billion in 2025, demonstrating the company's competitiveness and profitability in the rapidly growing AI market.
- Positive Market Reaction: Following the chip announcement, Arm's stock rose approximately 13.2% in premarket trading, reflecting investor optimism about the company's future growth prospects, despite a 1.5% decline on Tuesday.
- Expanded Customer Base: Meta is the first official customer for Arm's new chip, with Arm's cloud AI head noting a $1 trillion market size, indicating that the chip will attract more customers opting for its solutions over in-house alternatives, thereby expanding the company's market share and profit opportunities.
See More
ARM Shares Surge in Premarket Trading: Analyst Suggests Even a Small Portion of Meta's Capital Expenditure Could Significantly Impact Revenue
Meta's Involvement in AI CPU Platform: Analysts highlighted Meta's role in the new AGI server CPU platform, which is expected to shift Arm's revenue model from royalty licensing to selling finished silicon, targeting agentic AI workloads that require significantly more CPU cores.
Stock Market Reaction: Shares of Arm Holdings surged by 10% in premarket trading following the announcement, indicating strong investor interest in the potential revenue opportunities tied to Meta's involvement in AI infrastructure.
Strategic Shift for Arm: Arm's new strategy positions the company between hyperscaler-built processors and traditional enterprise server chips, aiming to fill a market gap in server CPU offerings, particularly for agent-driven data centers.
Competitive Landscape and Future Outlook: Despite a positive outlook, analysts noted uncertainties regarding commercialization timing and competition from established players like Intel and AMD, emphasizing the need for third-party benchmarks to validate Arm's performance claims in real-world workloads.
See More
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- Chip Launch: Arm officially unveiled its own-designed Arm AGI CPU at the Arm Everywhere event, targeting AI data center needs and projecting annual revenue of $15 billion within five years, significantly enhancing its market position.
- Market Share Advantage: With over 99% market share in the smartphone sector and rapid growth in data centers, Arm's technological edge positions it favorably in a competitive landscape, especially as energy efficiency becomes increasingly critical.
- Profit Potential: The new chip is expected to generate over $5 billion in annual profit, and with a gross margin of 94.84%, it indicates Arm's potential for higher profitability during the AI boom, further solidifying its market standing.
- Stock Reaction: Following the announcement, Arm's stock surged 8% in after-hours trading, reflecting investor optimism about the new chip and significantly boosting market confidence in its future growth potential.
See More
Arm Launches First Self-Designed Chip with Meta as Flagship Customer
- Chip Launch: Arm is launching its first self-designed AGI CPU, expected to generate $15 billion in annual sales within five years, marking a significant shift from its traditional licensing model to proprietary products, enhancing its competitive edge.
- Partnerships: Meta Platforms is the flagship customer co-developing the new chip, highlighting Arm's strategic importance in the AI data center space, while also attracting a diverse customer base including Cloudflare, SAP, and OpenAI, further expanding its market share.
- Market Potential: Arm anticipates total revenue to rise to $25 billion in five years, with earnings per share projected to reach $9, indicating strong growth potential that could see its stock price increase sixfold if current sales multiples are maintained.
- Technological Advantage: The chip delivers double the performance of comparable x86 platforms for AI data centers, addressing the growing demand for computing power, thereby solidifying Arm's leadership in both the smartphone and data center markets.
See More
iShares Semiconductor ETF Averages 30% Returns Over a Decade
- Investment Return Potential: The iShares Semiconductor ETF has averaged a 30% annual return over the past decade, indicating that a $250,000 investment could grow to $1 million in the next ten years, showcasing its strong performance and growth potential in the semiconductor sector.
- Core Holdings Analysis: The ETF's largest holdings include Micron, Nvidia, and Advanced Micro Devices, which are critical suppliers of AI chips and components, with current demand for their products exceeding supply, driving their revenues and stock prices higher.
- Market Demand Drivers: With surging demand for semiconductors from the AI and cloud computing sectors, the iShares Semiconductor ETF has achieved a 12.8% compound annual return since its inception in 2001, with an accelerated annualized return of 30.1% over the last decade, reflecting the urgent need for high-performance chips.
- Future Outlook: Although future returns may slow, Nvidia CEO Jensen Huang predicts that data center operators could spend up to $4 trillion annually on infrastructure by 2030, providing strong support for the continued growth of the iShares ETF.
See More
AI Hardware Demand Fuels Semiconductor ETF Growth
- Surge in AI Hardware Demand: Companies like Nvidia, AMD, and Micron are pivotal suppliers in AI data center hardware, with current demand outstripping supply, driving their revenues and stock prices higher, indicating robust growth potential in the AI sector.
- Significant ETF Returns: The iShares Semiconductor ETF has achieved a compound annual return of 12.8% since its inception in 2001, with an accelerated annualized return of 30.1% over the past decade, demonstrating the semiconductor industry's growth fueled by cloud computing and AI demand, promising substantial returns for investors.
- Investment Growth Potential: Investing $250,000 in the iShares ETF could yield $1 million in under 6 years at a 30.1% annual return, showcasing the ETF's strong growth potential driven by AI hardware demand.
- Future Spending Expectations: Nvidia's CEO predicts that data center operators could spend up to $4 trillion annually on infrastructure by 2030, which, if realized, would further propel investments and growth in the semiconductor industry, ensuring the ETF's long-term return potential.
See More
Arm's New Chip Expected to Generate $15 Billion Revenue by 2031
- Chip Launch: Arm unveiled its first in-house chip, the AGI CPU, in San Francisco, projecting $15 billion in revenue by 2031, showcasing the company's strong potential in the AI inference market and solidifying its position in the semiconductor industry.
- Revenue Expectations Surge: Arm anticipates total annual revenue of $25 billion, a sixfold increase from $4 billion in 2025, demonstrating the company's competitiveness and profitability in the rapidly growing AI market.
- Positive Market Reaction: Following the chip announcement, Arm's stock rose approximately 13.2% in premarket trading, reflecting investor optimism about the company's future growth prospects, despite a 1.5% decline on Tuesday.
- Expanded Customer Base: Meta is the first official customer for Arm's new chip, with Arm's cloud AI head noting a $1 trillion market size, indicating that the chip will attract more customers opting for its solutions over in-house alternatives, thereby expanding the company's market share and profit opportunities.
See More
ARM Shares Surge in Premarket Trading: Analyst Suggests Even a Small Portion of Meta's Capital Expenditure Could Significantly Impact Revenue
Meta's Involvement in AI CPU Platform: Analysts highlighted Meta's role in the new AGI server CPU platform, which is expected to shift Arm's revenue model from royalty licensing to selling finished silicon, targeting agentic AI workloads that require significantly more CPU cores.
Stock Market Reaction: Shares of Arm Holdings surged by 10% in premarket trading following the announcement, indicating strong investor interest in the potential revenue opportunities tied to Meta's involvement in AI infrastructure.
Strategic Shift for Arm: Arm's new strategy positions the company between hyperscaler-built processors and traditional enterprise server chips, aiming to fill a market gap in server CPU offerings, particularly for agent-driven data centers.
Competitive Landscape and Future Outlook: Despite a positive outlook, analysts noted uncertainties regarding commercialization timing and competition from established players like Intel and AMD, emphasizing the need for third-party benchmarks to validate Arm's performance claims in real-world workloads.
See More
Arm Launches Own Chip, Market Reacts Positively
- Chip Launch: Arm officially unveiled its own-designed Arm AGI CPU at the Arm Everywhere event, targeting AI data center needs and projecting annual revenue of $15 billion within five years, significantly enhancing its market position.
- Market Share Advantage: With over 99% market share in the smartphone sector and rapid growth in data centers, Arm's technological edge positions it favorably in a competitive landscape, especially as energy efficiency becomes increasingly critical.
- Profit Potential: The new chip is expected to generate over $5 billion in annual profit, and with a gross margin of 94.84%, it indicates Arm's potential for higher profitability during the AI boom, further solidifying its market standing.
- Stock Reaction: Following the announcement, Arm's stock surged 8% in after-hours trading, reflecting investor optimism about the new chip and significantly boosting market confidence in its future growth potential.
See More
Arm Launches First Self-Designed Chip with Meta as Flagship Customer
- Chip Launch: Arm is launching its first self-designed AGI CPU, expected to generate $15 billion in annual sales within five years, marking a significant shift from its traditional licensing model to proprietary products, enhancing its competitive edge.
- Partnerships: Meta Platforms is the flagship customer co-developing the new chip, highlighting Arm's strategic importance in the AI data center space, while also attracting a diverse customer base including Cloudflare, SAP, and OpenAI, further expanding its market share.
- Market Potential: Arm anticipates total revenue to rise to $25 billion in five years, with earnings per share projected to reach $9, indicating strong growth potential that could see its stock price increase sixfold if current sales multiples are maintained.
- Technological Advantage: The chip delivers double the performance of comparable x86 platforms for AI data centers, addressing the growing demand for computing power, thereby solidifying Arm's leadership in both the smartphone and data center markets.
See More
