Interested in Artificial Intelligence (AI) Stocks in 2026? Consider Buying This Top-Performing AI ETF.

Artificial intelligence (AI) is the fastest-growing secular trend today, and it's still in its early stages. So, there should be plenty of growth opportunities for long-term investors.

Nvidia (NASDAQ: NVDA) rightfully receives much attention in the AI space, as its graphics processing units (GPUs) are widely considered the "gold standard" for training AI models and deploying AI applications. Micron Technologies (NASDAQ: MU) has also been garnering significant recent coverage in the financial press. Its stock has been soaring amid the AI revolution's ravenous demand for memory chips, creating a supply crunch.

These are two great stocks -- and there are other attractive stocks in the AI sector. But AI stocks are also volatile, and in the fast-evolving AI space, the current winners may struggle in the future. That's why some investors might prefer buying an exchange-traded fund (ETF) in addition to, or instead of, individual stocks.

ETFs let you diversify your investments, and they trade like stocks.

Image source: Getty Images.

My "best AI ETF" pick is up big over the last year

In mid-January 2025, I wrote:

The best AI-focused ETF, in my opinion, is not one with artificial intelligence or AI in its name; it's the VanEck Semiconductor ETF (NASDAQ: SMH). Semiconductors, or chips, are the building blocks of AI infrastructure, such as servers in data centers and the electronic items AI is "smartening" up, from smartphones to cars.

Over the one-year period through Feb. 10, this ETF returned 62.6% -- nearly four times the S&P 500's 15.9% return. Moreover, it also has strong long-term returns.

I still favor the VanEck Semiconductor ETF as a play on the AI space. That's because the AI hardware infrastructure buildout is continuing at a torrid pace. The hyperscalers (big tech companies that operate huge data centers) and other major software companies combined plan to further increase their already massive AI spending in 2026. With a few exceptions (Alphabet, perhaps?), this suggests to me that the chipmakers and chip equipment makers are still the best way to profit from the AI revolution.

Data source: YCharts. Data as of Feb. 10, 2026.

VanEck Semiconductor ETF: Overview

A notable positive of the VanEck Semiconductor ETF is its longer track record than many of the so-called "AI ETFs." It began trading in 2011.

VanEck Semiconductor ETF is an index fund that tracks the MVIS US Listed Semiconductor 25 index. This index comprises a portfolio of global companies across the semiconductor value chain, from design to manufacture. The fund has 25 stock holdings, all listed on a major U.S. stock exchange.

The ETF uses modified market-cap weighting, capping each holding's weighting at 20%. Its expense ratio of 0.35% is reasonable for a fund focused on a particular space.

VanEck Semiconductor ETF: Top 10 stock holdings

Data sources: VanEck Semiconductor ETF, finviz.com, and YCharts. EPS = earnings per share. Portfolio weights as of Feb. 9, 2026. All other data as of Feb. 10, 2026.

The above holdings fall into these categories:

• Chip producers: Five of the top 10 are chipmakers -- Nvidia (No. 1), Broadcom (3), Micron (4), Intel (7), and Texas Instruments (8).
• Foundry: Taiwan Semiconductor Manufacturing (2) is the world's largest chip foundry. It makes chips for companies that contract out their chip manufacturing.
• Chip equipment manufacturers: ASML (5), Lam Research (6), Applied Materials (9), and KLA (10).

In short, the VanEck Semiconductor ETF is poised to continue benefiting from the rapid, widespread adoption of artificial intelligence.

Beth McKenna has positions in Nvidia. The Motley Fool has positions in and recommends ASML, Alphabet, Applied Materials, Intel, Lam Research, Micron Technology, Nvidia, Taiwan Semiconductor Manufacturing, and Texas Instruments. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.