Last week saw significant price declines in the technology sector.
The high-flying AI stocks and similar future topics such as quantum computing were hit particularly hard. Palantir lost 11 percent within a few days, the chip giant Nvidia lost 6 percent, and even the software giant Microsoft suffered a setback of almost 8 percent. AMD was hit even harder with a loss of 17 percent and the quantum computing specialist D-Wave Quantum, which lost over 13 percent.
This correction does not come as a complete surprise. After months of price gains and, in many cases, triple-digit annual performances, many tech stocks had reached ambitious valuation levels. Investors are becoming increasingly nervous about concerns that the massive investments in AI infrastructure, which could amount to several trillion dollars over the next few years, may not deliver sufficient returns in a timely manner. The worry: too much money is spent, too little comes back.
But it is precisely such corrections that can offer long-term investors attractive entry opportunities. The fundamental drivers of the AI revolution remain intact: companies worldwide are digitizing their processes, data centers are being massively expanded, and the demand for high-performance chips is continually increasing. Even if short-term exaggerations are corrected, the structural upward trend is likely to continue in the medium term.
ETFs offer the advantage of diversification. Instead of relying on individual, highly volatile tech stocks, investors can use thematic ETFs to benefit from the sector’s intact long-term trend. Three specialized products deserve special attention.
Quantum computing is considered one of the most promising future technologies of all. The WisdomTree Quantum Computing UCITS ETF USD Unhedged Acc (ISIN IE000W8WMSL2 / WKN A419HV) taps into this niche market with a total expense ratio of 0.50 percent per year. The ETF, which was only launched in August 2025, has a fund volume of 95 million euros, and the income is reinvested. The ETF invests in 33 selected companies active in the field of quantum computing. The largest holdings include Rigetti Computing (9.74 percent), IonQ (8.16 percent) and D-Wave Quantum (7.58 percent). The portfolio is supplemented by established tech companies such as Intel, Alphabet and IBM. The latest correction hit particularly hard in the targeted sector: last month the ETF lost 15.6 percent. But that could be exactly the opportunity: Quantum computing is still at the very beginning of its commercial use. For risk-tolerant investors with a long investment horizon, the current weakness offers a possible entry point into a technology that could revolutionize the sector.
More broadly, the WisdomTree Artificial Intelligence UCITS ETF USD Acc (ISIN IE00BDVPNG13 / WKN A2N7KX) invests in 63 companies from the entire AI ecosystem. With a TER of 0.40 percent and a fund volume of 837 million euros, it is one of the more established AI products on the market. The portfolio is deliberately diversified and avoids extreme individual stock weightings. In addition to chip manufacturers, there are cloud providers and specialized AI infrastructure companies. The monthly performance of minus 11.1 percent reflects the broad correction. Calculated over one year, there is still an increase of 4.1 percent, and over three years it is even 65.2 percent.
As the most cost-effective option, the HSBC Nasdaq Global Semiconductor UCITS ETF (ISIN IE000YDZG487 / WKN A3C98L) covers the global semiconductor sector with a TER of 0.35 percent. With a fund volume of 74 million euros, it is smaller, but invests in 80 positions and thus offers broad diversification. The largest holdings are ASML (9.13 percent), Taiwan Semiconductor (7.89 percent) and Broadcom (7.76 percent). Last month, the ETF fell around 6 percent – significantly less than the specialized AI funds. In the twelve-month period it is up 28.5 percent and over three years it is even 131.9 percent.
Conclusion: The recent correction may be painful, but the structural growth drivers of AI and semiconductors remain intact. What remains crucial is a long investment horizon and the willingness to endure fluctuations.