Artificial intelligence has fueled one of the strongest stock market rallies in recent years, with semiconductor companies leading much of the market’s gains in 2026. While chipmakers remain central to the AI ecosystem, the next phase of growth could be driven by the cloud infrastructure, cybersecurity, and software companies that enable businesses to put AI to work.
For investors looking beyond chipmakers, the First Trust Cloud Computing ETF (NASDAQ:SKYY), First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR), and iShares Expanded Tech-Software Sector ETF (BATS:IGV) each provide exposure to a different area of the expanding AI landscape. As enterprise adoption begins to accelerate, these three ETFs could be well positioned to benefit.
Businesses Are Putting AI to Work
The first phase of the AI boom has been driven largely by the companies developing the hardware needed to train AI models. While semiconductors remain essential, the next stage of growth is likely to come from businesses across industries incorporating AI into their day-to-day operations.
Instead of simply building larger AI models, companies are increasingly investing in the cloud infrastructure needed to deploy AI applications, the cybersecurity solutions required to protect AI-powered systems, and the software platforms that enable employees to automate tasks and improve productivity.
As AI adoption continues to grow, spending is likely to broaden across all areas of the technology sector.
For investors, that shift could create opportunities beyond just semiconductor stocks. ETFs that are focused on cloud computing, cybersecurity, and enterprise software seem well positioned to benefit as artificial intelligence becomes an increasingly important part of the broader economy.
First Trust Cloud Computing ETF (SKYY)
As AI moves from development to widespread deployment, cloud computing is likely to play an increasingly important role. Currently, most businesses lack the infrastructure to run AI applications on their own. This makes cloud platforms the primary way organizations access the computing power needed to integrate AI into everyday operations.
The First Trust Cloud Computing ETF (SKYY) invests specifically in companies focused on cloud infrastructure, cloud platforms, and services. As a result, the fund provides diversified exposure to a critical layer of the AI ecosystem. The fund is up 10.24% year to date and has produced a 73.21% total return over the past three years, suggesting investors have already begun rewarding companies positioned to benefit from expanding AI adoption.
First Trust Nasdaq Cybersecurity ETF (CIBR)
As businesses deploy AI across their operations, protecting sensitive data and AI-powered systems becomes crucial. AI is likely to increase both the volume and sophistication of cyber threats while also increasing the amount of sensitive data that organizations must protect.
The First Trust Nasdaq Cybersecurity ETF (CIBR) provides exposure to many of the industry’s leading cybersecurity companies, including Palo Alto Networks, Cisco Systems, Broadcom, and Zscaler. The fund has returned 21.93% year to date while generating a 100.44% total return over the past three years, reflecting continued investor optimism as cybersecurity spending remains a top priority for enterprises adopting AI technologies.
iShares Expanded Tech-Software Sector ETF (IGV)
For many businesses, the greatest long-term value of artificial intelligence will come from software that improves productivity. Rather than building AI models themselves, companies are increasingly integrating AI into existing enterprise software platforms.
The iShares Expanded Tech-Software Sector ETF (IGV) provides diversified exposure to leading software companies, including Microsoft, Oracle, Salesforce, and Palantir. Although the fund is down 17.42% year to date following a pullback in software stocks, it has still delivered an impressive 279.20% total return over the past three years, highlighting the sector’s long-term growth potential as AI adoption continues to accelerate.
Which ETF if Best Positioned for the Back Half of 2026
Each of these ETFs provide exposure to a different area of the expanding AI narrative, making them complementary holdings rather than direct competitors.
SKYY offers a way to capitalize on the growing demand for cloud infrastructure, CIBR targets the rising need for cybersecurity as AI adoption accelerates, and IGV provides exposure to the software companies that ultimately monetize artificial intelligence through enterprise applications.
For investors seeking the strongest combination of current momentum and long-term growth potential, CIBR appears particularly well positioned, supported by its strong year-to-date performance and continued demand for cybersecurity solutions. However, all three funds could benefit if enterprise AI spending continues to broaden beyond semiconductor companies during the second half of 2026.
| Metric | SKYY | CIBR | IGV |
| Theme | Cloud Computing | Cybersecurity | Enterprise Software |
| YTD Return | 10.24% | 21.93% | -17.42% |
| 3-Year Total Return | 73.21% | 100.44% | 279.20% |
| Expense Ratio | 0.60% | 0.58% | 0.39% |
| Net Assets | $2.78B | $14.20B | $13.15B |
| # of Holdings | 65 | 45 | 115 |
What to Look for Going Forward
The next phase of AI growth is unlikely to be defined solely by advancements in semiconductor technology. Instead, investors should watch for signs that businesses are increasing spending on cloud infrastructure, cybersecurity, and enterprise software as artificial intelligence becomes more deeply integrated into everyday operations.
If enterprise AI adoption continues to accelerate, SKYY, CIBR, and IGV each offer diversified exposure to a different parts of that trend. While risks surrounding the AI trade remain, these ETFs appear well positioned to benefit as spending expands beyond chips and into the broader economy.
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