Invesco QQQ ETF remains a buy at record highs despite heavy concentration in AI-driven tech stocks, historical data shows.

The Nasdaq-100 index is composed of the top 100 companies by value on the Nasdaq stock exchange (excluding banks and financial institutions). Seven of the 10 American companies worth $1 trillion or more operate in the technology sector and contribute to the artificial intelligence boom. The technology sector now accounts for over 60% of the index.

Nvidia (8.16% of the Invesco QQQ ETF portfolio), Broadcom, Micron Technology, Alphabet, and Microsoft drive AI-related gains through graphics processing units (GPUs), AI accelerators, memory chips, and cloud computing services. Since early 2023, the Nasdaq-100 has soared by 177%, but excluding the technology sector, returns fell to just 29%.

Investors who bought the Invesco QQQ ETF at any record high since its 1999 inception eventually made money, including those who entered right before the dot-com bubble burst in 2000, the pandemic crash in 2020, or the inflation-driven bear market in 2022. The ETF has delivered a compound annual return of 10.6% over the last 27 years.