AI Is Entering Its Next Phase. These 5 ETFs Could Benefit.

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AI’s Next Phase and What It Means for SA Investors

AI’s shift from building infrastructure to real-world application favors diversified tech exposure with mixed outcomes for South African markets.

Global AI is moving from the nuts and bolts of hardware to integration and actual use, opening pockets of opportunity beyond just the chipmakers everyone knows. For South Africa, that means watching the USD/ZAR closely alongside global tech trends. Semiconductor ETFs like SMH capture factory-level demand, but the real growth may come from software and cybersecurity firms—the fields where AI actually boosts productivity and protects data, areas less dependent on raw materials or direct local supply. Locally, firms like Naspers and Prosus—heavy in software and cloud businesses—could catch a slice of this wave, even if their share prices are volatile given global tech sell-offs. Meanwhile, banks and infrastructure plays like Standard Bank or Barloworld don’t get a direct lift from AI yet, but improved automation in their sectors might offer longer-term boosts. However, a stronger rand could moderate imported tech costs but pressure export-heavy sectors like mining. The risk is clear: if the US throttles AI chip exports or global demand stalls, these themes falter just as quickly. this is just our opinion and not financial advice