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StocksMedium•13 April 2026•

1 min read

iShares AI ETF (ARTY) Maintained as 'Buy' on Attractive Valuation and Growth Metrics

Key Facts

1ARTY trades at a low 16.5x P/E with a high 24.8% long-term EPS growth rate.

2The ETF's PEG ratio is approximately 0.7x, indicating an attractive valuation.

The iShares Future AI & Tech ETF (ARTY) has been reiterated as a 'buy' by analysts, citing compelling valuation metrics and strong technical performance within the AI sector. Currently, the ETF trades at a relatively low price-to-earnings (P/E) ratio of 16.5x, paired with a robust long-term earnings growth rate of 24.8%. This results in a price-to-earnings-to-growth (PEG) ratio of approximately 0.7x, suggesting the fund is undervalued relative to its significant growth potential. The fund's portfolio is heavily concentrated, with 85% allocated to the information technology sector and a notable one-third exposure to non-U.S. equities. Analysts believe the AI investment trend remains fundamentally supported, providing a bullish outlook for the ETF and its underlying technology holdings. This recommendation highlights the potential for continued expansion in the AI space despite previous market gains.