A surge in Intel shares is highlighting how the artificial intelligence trade is expanding beyond graphics chips, with demand now spreading across the broader semiconductor ecosystem.
BNN Bloomberg spoke with Elliott Johnson, chief investment officer at Evolve ETFs, about how the AI theme is widening, why diversification matters and how investors can gain more targeted exposure to technology.
Key Takeaways
- Intel’s strong earnings and share rally signal that AI-driven demand is expanding beyond GPUs into the broader semiconductor ecosystem.
- Growth in data centres is driving demand for CPUs, memory and infrastructure, reinforcing the scale of AI investment.
- The AI trade is no longer concentrated in a single company, with investors increasingly looking at diversified exposure across big tech.
- Broad indices like the NASDAQ 100 include significant non-tech exposure, which can dilute targeted investments in technology.
- Strong enterprise spending and rising AI-related revenues are helping justify increased capital investment, including debt financing.
Read the full transcript below:
ANDREW: As I just mentioned, Intel shares are sharply higher today. The company reported stronger sales and raised its forecast, citing a resurgence in demand for its central processing unit computers, and that is boosting NASDAQ 100 futures. We’re joined by Elliott Johnson, chief investment officer at Evolve ETFs. Thanks for joining us. Quite the move in Intel this morning.
ELLIOTT: Yeah, thanks for having me. When you look at Intel’s chart, you have to zoom out a lot if you want to see where Intel is compared to its previous all-time high, which was in September 2000. But when you look at the past year, most of that gain and recovery has happened in the last 12 months. That really tells you a lot about where the AI trade is and how it’s broadening out to the entire chip sector. I think their earnings show this is not just the promise of something to come — it’s actually being delivered, because the earnings beat was significant.
ANDREW: All the buzz has been about the graphic processing units that were the origin of the devices Nvidia now sells. But Intel is saying central processing units are a big part of the story.
ELLIOTT: Yeah, for sure. The AI trade initially was kind of confined to Nvidia — it was a GPU story. In recent months, people have started to realize there are a lot of other elements to it. RAM prices, for example, are rising because the amount required for these data centres has increased. But you also always need the CPU. With data centre construction continuing to grow rapidly, you need processors made by Intel. This is the knock-on effect of stories about fundraising from companies like OpenAI — when you hear about the billions they’re raising, they’re spending some of that on chips from Intel, Nvidia, on RAM and on data centre construction.
ANDREW: There’s a headline here: U.S. President Donald Trump’s bet on Intel just made the U.S. government nearly US$30 billion on its investment.
ELLIOTT: Yeah, not a bad portfolio manager.
ANDREW: Go tell him that — we’ll never hear the last of it. That’s interesting, though. Intel has outpaced Nvidia over the past year.
ELLIOTT: Nvidia got to the point where everybody who wanted it owned it. It tells you that sometimes you can be right picking one stock, but overall you want diversification within a theme. Big tech is the basket to own. Rather than trying to pick one or two winners — you might get it right, but do you get it right at the right time? How much forward demand is already priced in? That’s why diversification can help.
ANDREW: One of the classic ways to play tech has been to buy QQQ, the NASDAQ 100, but you pick up a number of non-tech stocks. You’ve launched QQQT — what is that?
ELLIOTT: There are only about 45 tech names in the NASDAQ 100. We partnered with NASDAQ and asked them to create an index that includes only the technology names. People buy QQQ thinking they’re getting tech, but you also get companies like Lululemon or Walmart, which doesn’t align with what investors expect. In most portfolios, you already have broad exposure through indices like the S&P 500. But there are times when you need increased allocation to a specific sector. This gives you exposure to the largest tech companies while still being diversified.
ANDREW: Can you clarify the name?
ELLIOTT: It’s the Evolve NASDAQ Technology Index in Canada.
ANDREW: And is it a straightforward ETF? Any income features?
ELLIOTT: There’s a version with covered calls — ticker QQQY. So investors can choose whether they want additional income through an options strategy.
ANDREW: When did you launch the straightforward version?
ELLIOTT: About a couple of years ago, and it’s grown very well. Over the past few years, tech leadership has driven strong performance, and investors are taking notice.
ANDREW: So around July 2023?
ELLIOTT: That sounds about right.
ANDREW: It’s gone from under $24 to above $43 over that period, according to my screen.
ELLIOTT: Yeah, that sounds right.
ANDREW: What about debt in AI? Oracle is often cited, but there are concerns about borrowing levels.
ELLIOTT: Debt really comes down to servicing capability. Six months ago, the concern was whether there was enough revenue to support the spending. What we’ve seen recently, including strong revenue growth at Anthropic, suggests the answer is yes. Enterprise demand is driving that spending. We’re less concerned about whether companies use debt or equity, as long as they have strong products. AI has evolved from a chatbot into something that can act as a co-worker, performing tasks. That drives more spending, which supports servicing debt. And interest rates remain relatively low from a historical perspective, making borrowing attractive.
ANDREW: Is that AI co-worker going to start telling you to get off your phone?
ELLIOTT: Maybe, but I think we all need to take breaks from our phones regardless. Sometimes it’s just about going outside.
ANDREW: Thanks very much. Elliott Johnson, chief investment officer at Evolve ETFs.
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This BNN Bloomberg summary and transcript of the April 24, 2026 interview with Elliott Johnson are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
