For investors seeking momentum, Global X Artificial Intelligence & Technology ETF (AIQ Quick QuoteAIQ - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 36.17% from its 52-week low price of $29.36/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

AIQ in Focus

The underlying Indxx Artificial Intelligence & Big Data Index is designed to provide exposure to exchange-listed companies in developed markets that are positioned to benefit from further development and implementation of artificial intelligence (AI) technology, as well as to companies that provide critical technology and services for the analysis of large and complex data sets. The product charges 16 bps in annual fees (see: All Artificial Intelligence And Robotics ETF).

Why the Move?

The potential of AI to revolutionize global productivity and GDP is immense. Most tech giants are coming up with expansion plans on AI and intend to take the growth momentum forward. Increasing corporate spending on AI is also acting as a tailwind for the fund. Additionally, with tech giants needing substantial capital to expand their AI initiatives, the Fed’s decision to cut interest rates bodes well.

The global AI market is forecast to reach a valuation of $826.70 billion by 2030 at a CAGR of 28.46% from 2024 to 2030, according to Statista.

More Gains Ahead?

AIQ might continue its strong performance in the near term, with a positive weighted alpha of 33.44 (as per Barchart.com), which gives cues of a further rally.