**Industrial and Infrastructure Stocks Poised to Share Spotlight with AI Trade**
Industrial and infrastructure stocks may soon capture more attention as the artificial intelligence (AI) trade continues to dominate headlines. According to ETF Action’s Mike Atkins, a bullish setup is emerging, fueled by supportive policy changes and evolving consumer trends.
Atkins discussed his outlook during a volatile month for Big Tech and AI-related stocks. “You’re seeing kind of the old-school infrastructure, industrial products that have not done as well over the years,” said Atkins, founding partner at ETF Action, during an appearance on CNBC’s “ETF Edge.” “But there’s a big drive, kind of away from globalization into this reshoring concept, and I think that has legs.”
**AI Boom Drives Infrastructure and Industrial Stocks**
Global X CEO Ryan O’Connor shares a similar optimism, noting that industrial groups are instrumental in supporting the AI boom. His firm operates the Global X U.S. Infrastructure Development ETF (PAVE), which tracks companies involved in construction and industrial projects.
“Infrastructure is something that’s near and dear to our heart based off of PAVE, which is our largest ETF in the market,” O’Connor noted in the same interview. “We think some of these reshoring efforts that you can get through some of these infrastructure places are an interesting one.”
The Global X Infrastructure ETF has climbed 16% so far this year. In contrast, the VanEck Semiconductor ETF (SMH)—which includes AI leaders such as Nvidia, Taiwan Semiconductor, and Broadcom—is up 42% as of Friday’s close. Although both ETFs are down for the month, Global X’s infrastructure ETF has shown more resilience. Its top holdings, according to the firm’s website, include Howmet Aerospace, Quanta Services, and Parker Hannifin.
**Electrification: Powering Future Growth**
Electrification is also seen as a key positive driver for these sectors. “All of the things that are going to be required for us to continue to support this AI boom, the electrification of the U.S. economy, is certainly one of them,” O’Connor added, highlighting the Global X U.S. Electrification ETF (ZAP), which provides investors exposure to this trend.
The electrification ETF is up nearly 24% year to date and has outperformed the VanEck Semiconductor ETF by several percentage points over the past month.
**Conclusion**
As AI continues to reshape the market, infrastructure and industrial stocks are emerging as essential players—not only driving the technology sector, but also benefiting from long-term reshoring and electrification trends. Investors looking for diversification may find opportunities in these evolving sectors.
https://bitcoinethereumnews.com/finance/ai-electric-appeal-for-underperforming-infrastructure-etf-experts/
