Riding the AI Wave: Alger's Strategic Vision for Enablers and Adopters

Alright, let's chat about something truly transformative: artificial intelligence. It feels like every day, we're hearing about a new breakthrough, a new application, and honestly, it can be a bit overwhelming trying to figure out how to even begin investing in such a rapidly evolving space. That's where a fund manager like Alger comes in, offering a nuanced perspective, especially in their recent Q3 2025 commentary on their AI Enablers and Adopters ETF.

What's particularly insightful about Alger's approach, and what really resonated from their commentary, is this recognition that the AI revolution isn't a single, monolithic thing. No, it’s a sprawling ecosystem, really, with two incredibly vital components. On one hand, you have the 'enablers' – the unsung heroes, if you will, laying the groundwork. Think about it: without these companies, the entire AI edifice wouldn't even exist. We're talking about the titans creating the cutting-edge semiconductor chips that power all these sophisticated algorithms, the cloud infrastructure providers offering the massive computing resources needed to train and run AI models, and even the companies building the specialized networking gear. They're the 'picks and shovels' of this modern-day gold rush, and frankly, their role is non-negotiable.

But then, we pivot to the 'adopters.' And this is where the magic truly unfolds, where AI moves from theoretical potential to tangible, real-world impact. These are the businesses across every imaginable sector – healthcare, finance, manufacturing, retail, you name it – that are not just dabbling in AI, but fundamentally integrating it into their core operations to unlock new efficiencies, drive innovation, and create entirely new value propositions. Alger’s commentary really emphasized how these adopters are using AI to reimagine customer experiences, streamline supply chains, develop personalized medicines, or even predict market trends with unprecedented accuracy. It’s about leveraging AI to gain a decisive competitive edge, and let's be honest, that's where a lot of the long-term, sustainable growth stories are likely to emerge.

From the perspective of Q3 2025, Alger highlighted a market that, while still heavily valuing the foundational enablers, was increasingly recognizing the transformative power of successful AI adoption. The narrative, as they saw it, was shifting slightly from pure infrastructure plays to companies demonstrating clear, measurable returns from their AI investments. This doesn't mean the enablers are fading, not at all; they remain critical. But it signals a maturation in the market's understanding of AI's broader economic impact.

Ultimately, Alger’s ETF strategy, as articulated in their Q3 report, seems incredibly shrewd. By investing in both sides of this coin – the indispensable enablers and the innovative adopters – they’re aiming for a diversified exposure to the entire AI value chain. It’s a pragmatic approach, recognizing that while the 'picks and shovels' are essential, the real 'gold' is found in how that infrastructure is actually put to use to revolutionize industries. This dual focus provides a compelling way for investors to potentially capture growth from every facet of this ongoing, exhilarating AI revolution.