JPMorgan’s latest consumer-technology research points investors beyond the familiar mega-cap AI trade, highlighting companies using artificial intelligence and digital platforms to reshape e-commerce, manufacturing, travel and insurance.
The bank continues to rank Shopify (NASDAQ:SHOP) and Take-Two Interactive (NASDAQ:TTWO) among its highest-conviction consumer-tech investments, while upgrading Clear Secure (NYSE:YOU), Xometry (NASDAQ:XMTR) and EverQuote (NASDAQ:EVER) to Overweight.
The common thread is digital transformation, AI-enabled products, expanding marketplaces and improving operating leverage.
GENZ Offers the Closest One-ETF Match
For investors looking to capture JPMorgan’s two largest consumer-tech favorites, the VanEck Digital Native Economy ETF (NASDAQ:GENZ) offers a particularly relevant route.
The fund holds Shopify and Take-Two alongside other companies benefiting from the shift toward digitally native businesses. Its portfolio provides exposure to e-commerce, gaming, online platforms and other parts of the digital economy, making it a natural ETF complement to JPMorgan’s thesis.
The broader opportunity is notable: Neither Shopify nor Take-Two is a traditional AI stock, yet both benefit from the technology-driven transformation of their respective industries.
Xometry Brings AI Into Manufacturing
Xometry offers a more unusual piece of the thesis. The company operates a digital marketplace connecting businesses with manufacturing suppliers, while using AI and automation to improve sourcing and procurement.
Investors can access Xometry through the ARK 3D Printing ETF (BATS:PRNT), which has held the stock at a meaningful portfolio weight.
That makes PRNT an interesting second-order AI play. Rather than owning the companies building AI infrastructure, investors gain exposure to businesses using AI to modernize physical industries.
Clear Secure Adds the Digital-Identity Angle
Clear Secure brings another dimension to JPMorgan’s thesis. Its identity-verification platform sits at the intersection of technology, travel and digital security.
The iShares Cybersecurity and Tech ETF (NYSE:IHAK) provides exposure to Clear alongside a broader basket of cybersecurity and technology companies, offering investors a way to capture the digital-identity component without making a single-stock bet.
The Bigger ETF Opportunity
JPMorgan’s five favorites span e-commerce, gaming, digital manufacturing, identity and insurance technology. That makes them difficult to replicate with one ETF.
But that may be precisely the point. The bank’s picks highlight a second-generation AI trade in which the beneficiaries are not necessarily chipmakers or cloud giants, but companies using AI to make existing industries faster, more digital and more efficient.
For ETF investors, the opportunity is increasingly shifting from simply owning AI infrastructure to identifying the industries being transformed by it.
Photo: El-editorial / Shutterstock
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