European investors are driving the largest market for artificial intelligence (AI) and big data funds, even though most of the top companies in these funds are based in the United States, according to Morningstar.
By the end of May 2025, European AI fund assets reached $22.7 billion out of a global total of $38.1 billion recorded at the end of the first quarter. The Allianz Global Artificial Intelligence Fund alone manages $6.3 billion in assets.
Morningstar notes that nearly all the most common AI and big data stocks held by these funds are U.S.-listed, highlighting America’s leadership in the technology sector. Even the fund with the least U.S. concentration still allocates nearly 60% to American stocks.
The microchip maker Nvidia, a key player in AI technology, is the top holding in 89% of these funds. Other major U.S. companies like Microsoft, Alphabet (Google’s parent), Meta Platforms, and Amazon appear in at least 70% of the funds.
However, funds differ in their exposure to other companies beyond the so-called “Magnificent Seven.” Broadcom is the most widely held non-Magnificent Seven stock, followed by ServiceNow, Oracle, Advanced Micro Devices, Salesforce, and Marvell Technologies, each held by at least half of the funds.
Comparing the two largest AI funds—the Allianz Global Artificial Intelligence Fund and the Global X AI & Tech ETF—reveals different investment strategies.
They share only three of the same top 10 holdings. Allianz’s top holdings include Nvidia, Broadcom, and Eli Lilly, while Global X focuses on Tencent, Alibaba, and Samsung.
The iShares AI Adopters & Applications UCITS ETF stands out with only 8% of its portfolio in the Magnificent Seven stocks.
Since their launch, AI and big data funds have performed well but show more volatility than the broader market. Their prices surged after the launch of ChatGPT in late 2022 but fell following news about the success of DeepSeek’s AI model, showing the sector’s unique risk and reward dynamics.
AI and big data funds have been available since at least 2015, but their rapid growth reflects increasing investor interest worldwide, especially in Europe, which leads in fund assets despite the dominance of U.S.-based companies in holdings.
YOU MAY ALSO LIKE:
