Behind every great passively managed exchange-traded fund (ETF) is an index. Sometimes, those indexes were contrived to sell a product. And in the case of the new Morningstar PitchBook GenAI 20 Index, which launched on Jan. 15, 2026, I’d be shocked if one or more ETFs doesn’t emerge quickly. Regardless of whether you’re starving for the next AI stock ETF or not, there’s something worth cheering here. More News from Barchart Morningstar research is a longtime Wall Street staple. I’m old enough to remem ...

Group 1: AI and Chip Industry Dynamics - The US maintains a lead in the AI and chip sectors, particularly in chip imports, while China excels in AI applications [1][2] - The US innovation in AI is driving significant productivity gains, contributing approximately 0.9% to the 1.6% real GDP growth in 2023 [3] - Current large language models (LLMs) are at the level of a great graduate student, with advancements expected to reach the capability of a good PhD within a year, and a Nobel laureate level shortly thereafter [4] Group 2: Geopolitical Implications - The competition in AI is characterized by relative degrees of dominance rather than a clear winner or loser, impacting military and economic advantages [5][6] - AI is transforming warfare, with significant applications observed in the ongoing conflict in Ukraine, where AI technologies are enhancing operational capabilities [6][9] - The battlefield is increasingly reliant on unmanned systems, with Ukraine deploying around 9,000 drones daily, many of which are suicide drones [8][9]

Core Insights - Anthropic has signed a multibillion-dollar deal with Nvidia and Microsoft, marking a significant development in the AI landscape [1][2] - The partnership involves Anthropic purchasing $30 billion of computing capacity from Microsoft's Azure and committing to an additional 1 gigawatt of capacity [5][6] - Nvidia will supply its current Grace Blackwell superchips and upcoming Vera Rubin architecture chips as part of the deal [6] Nvidia's Strategic Positioning - The partnership with Anthropic reduces Nvidia's reliance on a small group of hyperscalers, diversifying its customer base [7] - The deal signifies Nvidia's evolution from merely supplying hardware to becoming a full-spectrum platform for AI ecosystems, including next-generation chips and software [9] - Anthropic's use of Nvidia's GPUs provides revenue visibility and customer lock-in compared to competitors like Advanced Micro Devices [8] Market Implications - The deal is expected to contribute to Nvidia's growth as AI infrastructure spending is projected to reach nearly $500 billion by 2026 among hyperscalers [11][12] - The partnership with Anthropic could help Nvidia expand its addressable market beyond major tech companies [12] - The accelerating investments in AI infrastructure may lead Nvidia towards achieving its next trillion-dollar milestone in market capitalization [13]