\n<\/p>\n
Built\u00a0using\u00a0a rules-based\u00a0approach\u00a0informed by\u00a0Bloomberg Intelligence\u00a0(BI)\u00a0research, the index\u00a0maps\u00a0the\u00a0AI value chain\u00a0and\u00a0identifies\u00a0companies with\u00a0significant involvement\u00a0in each link\u00a0of the AI infrastructure.\u00a0Numerous business models fit within this theme, from cloud computing platforms to semiconductors to hardware infrastructure.\u00a0<\/span>\u00a0<\/span><\/p>\n Only firms that have clear, material exposure to AI, as identified in BI research, are eligible for inclusion into the index. Once the eligible universe is set, the selection process groups companies into three categories: cloud, AI hardware, and AI semiconductors. From these, the 15 largest companies in each group, ranked by free-float market capitalization, are selected.<\/span><\/p>\n Some investors may question the need for a dedicated AI sleeve in portfolios. After all, many of the largest constituents in market cap weighted indices\u00a0are\u00a0active\u00a0in this growing area.\u00a0A simple market\u00a0cap weighted\u00a0approach, however,\u00a0may\u00a0not\u00a0reflect the\u00a0diversity of\u00a0AI-related business models.\u00a0To\u00a0avoid\u00a0large cap\u00a0names\u00a0from\u00a0dominating\u00a0the\u00a0index,\u00a0here,\u00a0the selected securities are\u00a0instead\u00a0equally weighted.\u00a0Such an approach also increases\u00a0the exposure to names that are smaller in market\u00a0capitalization\u00a0and whose price may not yet reflect the\u00a0magnitude\u00a0of their involvement\u00a0this early in their development cycle.\u00a0<\/span>\u00a0<\/span><\/p>\n Additionally, taking an Equal-weighted approach may\u00a0increase the\u00a0representation\u00a0of\u00a0companies involved in AI-related\u00a0M&A\u00a0activity. By giving smaller and mid-sized firms\u00a0greater\u00a0footing, the index\u00a0may highlight\u00a0potential\u00a0targets more fully.\u00a0<\/span>\u00a0<\/span><\/p>\n Traditional equity indices\u00a0<\/span>may underrepresent<\/span>\u00a0how AI is reshaping market growth. While\u00a0<\/span>broad<\/span>\u00a0benchmarks capture\u00a0<\/span>companies<\/span>\u00a0that are<\/span>\u00a0already\u00a0<\/span>benefiting<\/span>\u00a0from<\/span>\u00a0digital transformation, they\u00a0<\/span>often<\/span>\u00a0<\/span>reflect today\u2019s market composition rather than tomorrow\u2019s growth drivers.\u00a0<\/span><\/p>\n Even indices that focus on technology\u00a0<\/span>(<\/span>such as the Bloomberg 500 Tech and Bloomberg 100<\/span>\u00a0Indices)<\/span>\u00a0<\/span>do not fully capture the\u00a0<\/span>growth of the AI ecosystem as acceleration may be\u00a0<\/span>happening beneath the surface<\/span>.\u00a0<\/span>The following chart illustrates this gap, showing that the broader indices underrepresent the scale of projected sales growth across AI-related segments over the coming decade.<\/span><\/p>\n AI runs on data, and every image analyzed, every prompt\u00a0answered,\u00a0every recommendation generated requires vast storage. Western Digital\u00a0(WDC US)\u00a0has developed a framework called the AI Data Cycle, mapping the six key stages of AI workflows from raw data storage to new data generation.\u00a0At some stages, you need\u00a0\u201c<\/span>sports cars\u201d<\/span>\u00a0(SSDs) to move critical goods quickly. At others, you need\u00a0\u201c<\/span>cargo ships\u201d<\/span>\u00a0(HDDs) to carry massive loads efficiently. Western Digital builds both, and it designs them to work together as a complete\u00a0logistics\u00a0system for AI data.<\/span>\u00a0<\/span><\/p>\n What makes this significant is that Western Digital\u00a0isn\u2019t\u00a0competing to build AI models themselves. Instead,\u00a0it\u2019s\u00a0building the\u00a0<\/span>infrastructure backbone<\/span>\u00a0that\u00a0is intended to support\u00a0AI models\u00a0with\u00a0the\u00a0appropriate\u00a0storage\u00a0options across workflow stages.\u00a0The company\u2019s strong year-to-date performance\u00a0(+167.2% through\u00a0September)\u00a0may be attributed to some\u00a0market\u00a0participants\u00a0increased attention to\u00a0storage\u00a0infrastructure\u2019s role in\u00a0AI\u00a0workflows.<\/span>\u00a0<\/span><\/p>\n Technology\u00a0provided by\u00a0Credo\u00a0(CRDO US)\u00a0ensures information\u00a0moves\u00a0between\u00a0GPUs, storage systems, and networking gear. The firm\u00a0holds a leading position in\u00a0the Active Electrical Cable market and has deep partnerships with\u00a0hyperscalers\u00a0like Amazon, Microsoft, and Meta.\u00a0Credo\u00a0essentially gives\u00a0AI data centers the ability to add lanes to the data highways within.\u00a0<\/span>\u00a0<\/span><\/p>\n One of the biggest challenges in scaling AI today is\u00a0<\/span>energy consumption<\/span>.<\/span>\u00a0Training and running large AI models requires connecting thousands of GPUs in data centers, which in turn means moving vast amounts of data at extremely high speeds. Every time that data moves, energy is\u00a0consumed. This\u00a0is where Credo\u2019s technology comes in. Their products are specifically designed to move data quickly while using less power per bit transferred.\u00a0That means hyperscale data centers can train and deploy AI models without their energy bills spiraling out of control. <\/span>Credo\u2019s\u00a0revenue growth and\u00a0stock\u00a0performance in 2025 (+117% YTD through\u00a0September)\u00a0may suggest a growing interest in energy-efficient solutions for\u00a0AI\u00a0infrastructure.<\/span><\/p>\n For decades, Hon Hai Precision Industry\u00a0(2317 TT), or Foxconn, was synonymous with high-volume electronics assembly, particularly smartphones. Recently, however, Foxconn redirected its enormous manufacturing muscle toward\u00a0AI infrastructure. This move has paid off,\u00a0with\u00a0revenue from its\u00a0AI and cloud\/server division\u00a0now\u00a0surpasses that of\u00a0smartphone sales.<\/span>\u00a0<\/span><\/p>\n Today,\u00a0it\u00a0co-designs servers with NVIDIA and assembles forty percent of the world\u2019s AI servers. The company\u2019s pivot to AI servers\u00a0coincided with\u00a0record revenues in 2024 and 2025, and its year-to-date stock performance\u00a0(+21.6%\u00a0through September)\u00a0may\u00a0reflect\u00a0increased investor focus on AI infrastructure.\u00a0<\/span>\u00a0<\/span><\/p>\n AI adoption is accelerating across industries from healthcare to finance to entertainment. Each advance increases demand for chips, storage, servers, and faster data connections. The Bloomberg AI Value Chain Index is designed to capture this continuous change in demand. By focusing on the enabling infrastructure rather than any single model or application, the index\u00a0seeks\u00a0to capture relevant\u00a0new technologies\u00a0and players.<\/span>\u00a0<\/span><\/p>\n By equal weighting forty-five firms across cloud, semiconductors, and hardware, it offers a diversified, transparent way to track AI\u2019s growth. In a year where AI is at the forefront of many investors\u2019 minds, the index has delivered results that have been in line with or exceeded many of the more popular AI ETFs available on the market. If AI is the gold rush of our time, the index can be seen as a map to the companies selling the picks, shovels, and railroads.<\/span><\/p>\n ,\u00a0<\/span>and how Bloomberg Indices measure exposure to this theme? In part three of our series, we focus on AI Thematics, examining how a rules-based approach, supported by Bloomberg Intelligence,\u00a0<\/span>ide<\/span>ntifies<\/span>\u00a0co<\/span>mpanies materially engaged in AI development and deployment.<\/span><\/span>\u00a0<\/span><\/p>\n To learn more about Bloomberg <\/span>Indices<\/span>,<\/span> click <\/span><\/span>here<\/span><\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n Amplify has licensed the Bloomberg AI Value Chain Index for their ETF ticker\u00a0<\/span><\/span>AIVC<\/span><\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n The data and other information included in this publication is for illustrative purposes only, available \u201cas is\u201d, non-binding and constitutes the provision of factual information, rather than financial product advice. BLOOMBERG and BLOOMBERG INDICES (the \u201cIndices\u201d) are trademarks or service marks of Bloomberg Finance L.P. (\u201cBFLP\u201d). BFLP and its affiliates, including BISL, the administrator of the Indices, or their licensors own all proprietary rights in the Indices. Bloomberg L.P. (\u201cBLP\u201d) or one of its subsidiaries provides BFLP, BISL and its subsidiaries with global marketing and operational support and service. Certain features, functions, products and services are available only to sophisticated investors and only where permitted. Bloomberg (as defined below) does not approve or endorse these materials or guarantee the accuracy or completeness of any information herein, nor does Bloomberg make any warranty, express or implied, as to the results to be obtained therefrom, and, to the maximum extent allowed by law, Bloomberg shall not have any liability or responsibility for injury or damages arising in connection therewith. Nothing in the Services or Indices shall constitute or be construed as an offering of financial instruments by Bloomberg, or as investment advice or investment recommendations (i.e., recommendations as to whether or not to \u201cbuy\u201d, \u201csell\u201d, \u201chold\u201d, or to enter or not to enter into any other transaction involving any specific interest or interests) by Bloomberg. Information available via the Index should not be considered as information sufficient upon which to base an investment decision. All information provided by the Index or in this publication is impersonal and not tailored to the needs of any person, entity or group of persons. Absence of any trademark or service mark from this list does not waive Bloomberg\u2019s intellectual property rights in that name, mark or logo. For the purposes of this publication, Bloomberg includes BLP, BFLP, BISL and\/or their affiliates.<\/span><\/p>\n BISL is registered in England and Wales under registered number 08934023 and has its registered office at 3 Queen Victoria Street, London, England, EC4N 4TQ. BISL is authorized and regulated by the Financial Conduct Authority as a benchmark administrator. <\/span>\u00a9 2025 Bloomberg. All rights reserved.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Built\u00a0using\u00a0a rules-based\u00a0approach\u00a0informed by\u00a0Bloomberg Intelligence\u00a0(BI)\u00a0research, the index\u00a0maps\u00a0the\u00a0AI value chain\u00a0and\u00a0identifies\u00a0companies with\u00a0significant involvement\u00a0in each link\u00a0of the AI infrastructure.\u00a0Numerous business models fit within this theme, from cloud computing platforms to semiconductors to hardware infrastructure.\u00a0\u00a0 Only firms that have clear, material exposure to AI, as identified in BI research, are eligible for inclusion into the index. Once the eligible universe<\/p>\n","protected":false},"author":1,"featured_media":32956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[7727,3742,3841,12239,6275],"class_list":{"0":"post-32955","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-chain","9":"tag-engines","10":"tag-growth","11":"tag-insights","12":"tag-understanding"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/32955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32955"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/32955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/32956"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The\u00a0<\/span>p<\/span>ower of\u00a0<\/span>e<\/span>qual\u00a0<\/span>w<\/span>eighting<\/span>\u00a0<\/span><\/span><\/h2>\n<\/p>\n
Selected companies illustrating the approach employed by the Bloomberg AI Value Chain Index<\/span><\/span><\/h3>\n<\/p>\n
Western Digital: AI\u2019s\u00a0<\/span>e<\/span>xpanding\u00a0<\/span>l<\/span>ibrary<\/span><\/span>\u00a0<\/span><\/h4>\n<\/p>\n
Credo: Highways for AI\u00a0<\/span>d<\/span>ata<\/span><\/span>\u00a0<\/span><\/h4>\n<\/p>\n
Hon Hai: Factories of the\u00a0<\/span>f<\/span>uture<\/span><\/span>\u00a0<\/span><\/h4>\n<\/p>\n
Measuring the growth of AI infrastructure<\/span><\/span><\/h2>\n<\/p>\n
\n\t\t\t\t\t\t\tDisclaimer\t\t\t\t\t\t<\/h5>\n<\/p>\n