Why might the ETF be better than Palantir stock?

The ETF provides diversified exposure across multiple companies in the AI chip supply chain, reducing risk compared to investing in a single company like Palantir.

What are the main holdings in the ETF?

The ETF primarily includes holdings in NVIDIA (NVDA) and Intel (INTC), along with other AI chip companies.

Is investing in the ETF safer than Palantir stock?

Generally, yes, because diversification reduces single-company risk, but past performance does not guarantee future results.

Forget Palantir Stock at $140: Buy This AI Chip ETF Instead

An ETF specializing in AI chip stocks has posted a 10-year annualized return of 66%, surpassing Palantir's performance. The article compares the two options and offers a neutral analysis for investors.

June 7, 2026

2 min read

Source: Motley Fool

Key Numbers

annualized return 10yr

66%

The artificial intelligence sector is witnessing intense competition between individual stocks and specialized ETFs. In this context, an ETF focusing on AI chip companies such as NVIDIA (NVDA) and Intel (INTC) emerges as an attractive alternative to Palantir Technologies (PLTR) stock trading at $140.

ETF Performance

The fund has achieved a 10-year annualized return of 66%, outperforming many individual stocks in the same sector. This stellar performance reflects the surging demand for AI chips used in data centers, autonomous vehicles, and industrial applications.

Comparison with Palantir Stock

While Palantir focuses on data analytics and software, the ETF offers broader exposure to the AI chip supply chain. It includes holdings in NVIDIA (dominant in GPUs) and Intel (expanding its AI chip presence). This diversification reduces the risk of relying on a single company.

What It Means for Investors

For investors seeking AI sector exposure with diversification and a strong track record, the ETF may be a safer bet than a single stock like Palantir. However, investors should remain aware that past performance does not guarantee future results, and current valuations may impact expected returns.

Frequently Asked Questions

The ETF has posted a 10-year annualized return of 66%.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.