ETF Edge – Your guide to the markets

5 minute read

Markets move fast and headlines pile up. ETF Edge is our regular newsletter that helps you cut through the noise and focus on what really matters – the sectors, trends, and numbers shaping your portfolio.

In this first edition, we’re zeroing in on AI enablers: the chips, servers, and energy grids that make AI possible. Explore the funds positioned at the heart of these trends with ETF Explorer, and discover how you can align your portfolio with long-term growth opportunities.

The Three Pillars of the AI Revolution

The AI boom isn't just about software; it's a massive upgrade of the physical world. This structural shift rests on three key pillars: the core computer, the network, and the power.

1. The Core Compute: Semiconductors

Data centres are the new factories. Every AI breakthrough requires enormous computing power. Unlike past tech cycles, this demand grows with each new model. McKinsey projects that demand for AI-ready data center capacity could rise at an average rate of 33 per cent a year between 2023 and 2030. Why this matters: As AI systems become more complex, infrastructure demand will continue to grow, making data centres a structural, long-term growth story.

Supply chains can’t keep up. AI-optimised servers are facing longer lead times due to strong demand. At the heart of the bottleneck is high-bandwidth memory, a chip technology essential for training large AI models. SK Hynix expects demand to grow 30% annually through 2030. Why this matters: When supply lags this far behind, it locks in years of investment for chipmakers and equipment suppliers.

2. The Network: Cloud & Data Centres

Networks are being rebuilt from scratch. Data centres can’t move massive volumes of data using old infrastructure. That’s why firms like Arista Networks and Broadcom are reporting double-digit revenue growth as operators replace legacy systems with ultra-fast, AI-ready networks. Why this matters: This represents a full-scale rebuild of the digital plumbing. Specialised infrastructure providers are essential for building the networking equipment and management systems that make cloud computing and AI possible at scale.

3. The Power: Smart Grid & Energy

Powering AI could require the largest energy infrastructure build-up in decades. The International Energy Agency projects that data centres will more than double their electricity demand by 2030, consuming as much power as Japan does today.

The power crunch is already here: Gartner predicts that 40% of AI data centres will be power-constrained by 2027, while new facilities are already facing lengthy waits for grid connections.

Meeting this surge could require billions of dollars in grid upgrades globally. According to the International Energy Agency, global energy investment overall is set to reach a record US$3.3 trillion in 2025, with renewable energy, nuclear, and natural gas all playing roles in powering the AI boom.

Capturing the AI enablers

With ETF Explorer on the StashAway app, you’ll find a range of funds that capture different parts of the AI ecosystem – from chips to energy infrastructure. Data from Morningstar show that at the end of Q1 2025, global assets in artificial intelligence and Big Data funds totalled more than US$30 billion.

Global investors are already positioning their portfolios toward the AI ecosystem – explore the ETFs  below to see how you can also capture this structural growth.

Disclaimer: We’re sharing this information to help you learn more about what other investors are doing. Carefully consider your personal objectives, financial situation, and needs before investing. Not financial advice nor solicitation to purchase any financial product. For full disclaimer: https://www.stashaway.sg/legal. StashAway reserves the discretionary right to change the underlying ETF for specific asset classes.