It didn't seem that far ago in the past that the idea of artificial intelligence (AI) seemed like the stuff of science fiction. Nowadays, however, it seems that everywhere we look, AI has a presence. From customer service chatbots to self-driving cars, AI in a wide variety of places that transcend the generative AI applications like ChatGPT that people are turning to daily -- and maybe even hourly.

Recognizing how rapidly AI is escalating, growth investors are looking for ways to prosper from the trend. Fortunately for them, they needn't fret about identifying individual AI companies -- the exchange-traded fund Invesco QQQ ETF (NASDAQ: QQQ) provides a convenient one-stop shopping exchange-traded fund opportunity for those looking to invest $1,000 and hold on for the long term.

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Image source: Getty Images.

Don't let the name fool you -- AI exposure reigns supreme

Although you couldn't tell by the name of the fund, the Invesco QQQ ETF still offers considerable AI exposure, although it's not explicitly stated in the same way as other AI-focused ETFs like the Roundhill Generative AI and Technology ETF or the Global X Robotics and Artificial Intelligence ETF.

Providing exposure to the market's leading tech stocks, the Invesco QQQ ETF has the stated goal of tracking the Nasdaq-100, an index that tracks the performance of the top 100 nonfinancial stocks listed on the Nasdaq Stock Market.

In addition to all the "Magnificent Seven" stocks, the 10 largest positions in the Invesco QQQ ETF include semiconductor stalwart Broadcom, streaming leader Netflix, and leading wholesale retailer Costco Wholesale.

Data source: Invesco QQQ ETF Prospectus Data.

Despite the fact that there are 100 stocks held in the Invesco QQQ ETF, it's the top 10 positions that do the heavy lifting, representing 50% of the fund's weighting.

Besides companies providing innovative AI tools like Apple and Microsoft, investors have the opportunity to prosper from AI's use in autonomous vehicles with Tesla, as well as semiconductor stocks Nvidia and Broadcom that provide AI computing capabilities.

A simple way to surf the waves of tech innovation

While the popularity of some technologies -- like 3D printing -- turn out to not provide investors with the lucrative returns that they had seemed to initially offer, the omnipresence of AI in so many facets of society suggest that it's here to stay and become even more deeply embedded in our daily lives in the coming years. While it does, the Invesco QQQ ETF will continue to provide investors with the opportunity to benefit.

Naturally, tech advancements will continue, and the Invesco QQQ ETF will continue to serve as an ideal way for investors to have exposure to the companies at the vanguard of innovation, since the ETF is rebalanced quarterly and reconstituted annually.

Many experts, for example, suspect that quantum computing will be the next tech revolution. If they're correct, companies that are quantum computing industry leaders and are already held in the Invesco QQQ ETF -- like Nvidia, Microsoft, and Alphabet -- will provide exposure for investors.

This ETF's success is clear as day

Since its inception in March 1999, the Invesco QQQ ETF delivered a convincingly strong performance, soaring at a clip that exceeds those of both the S&P 500 and Nasdaq Composite. From the early days of the internet through the development of the smartphone industry up to the boom in AI stocks, the Invesco QQQ ETF provided investors with a convenient way to prosper from the recent technological achievements.

QQQ data by YCharts.

As it has over the past 25 years, the ETF is bound to experience some bumps in the road, as it's subject to the whims of the market. But for investors who take the long view -- our favorite type of investors -- the volatility the ETF experiences shouldn't impede it from enjoying future success and contributing greatly to growing investors' personal wealth.

As if the allure of the fund isn't bright enough, those who fret that a high-quality ETF such as this comes with exorbitant management costs needn't worry. The Invesco QQQ ETF has a low total expense ratio of 0.2%, or $20 annually for each $10,000 invested.

Should you invest $1,000 in Invesco QQQ Trust right now?

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

It's been some ride for USA Rare Earth (NASDAQ: USAR) investors so far this year. From the time it began trading on March 14, when it completed its business merger with a special purpose acquisition company (SPAC), through the end of March, the stock had plunged 68%.

But USA Rare Earth stock turned things around in April, and shares skyrocketed 76.9%, according to data provided by S&P Global Market Intelligence.

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Rare earth elements took center stage last month as President Donald Trump signaled that his administration was intent on shoring up the nation's supply of the critical elements. This is a boon for USA Rare Earth, which is developing a rare earth magnet manufacturing facility in Oklahoma.

Image source: Getty Images.

Digging into President Trump's interest in rare earth elements

In mid-April, President Trump signed an executive order that started an investigation into whether the U.S. reliance on imports for rare earth elements and other critical elements could jeopardize the nation's security. Consequently, USA Rare Earth stock jumped to the forefront of investors' radars as the company is committed to producing rare earth elements from its asset in Texas. Furthermore, the company plans on commencing operations at a rare earth magnet manufacturing facility in the first half of 2026.

Rare earth elements emerged as a major point of focus last month as China, striking back against Trump's announced imposition of tariffs, suspended exports of seven rare earth elements.

A scenario where there's a constrained supply of rare earth elements is of great concern to a variety of industries. Made from alloys of rare earth elements, rare earth magnets are an essential component of manufactured products used in defense applications to electric cars to smartphones.

According to the U.S. Geological Survey, about 70% of the rare earth elements that the U.S. imports come from China.

Should investors power their portfolios with USA Rare Elements right now?

It's unsurprising that shares of USA Rare Earth jumped as much as they did last month, considering how rare earth elements emerged as a striking point of contention between the United States and China. If you're considering picking up shares, however, you should temper your expectations because it's not clear that the company will immediately benefit from recent developments.

Even though the stock has fallen about 15% since the start of May, as of this writing, investors should remain circumspect. The company is still in the pre-revenue phase of its development, so there's a fair degree of risk associated with an investment. As such, only those with a high tolerance for risk should consider initiating a position at this point.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

April showers may have generally doused the spirits of investors, as the S&P 500 (SNPINDEX: ^GSPC)
nudged about 0.7% lower last month, but not all stocks suffered. Launch services provider Rocket Lab USA (NASDAQ: RKLB), for example, blasted 21.9% higher, according to data provided by S&P Global Market Intelligence.

Besides both the United States Department of Defense and the U.S. Air Force selecting Rocket Lab for participation in two noteworthy programs, the United Kingdom's Ministry of Defense awarded Rocket Lab a contract that motivated investors to bid Rocket Lab stock higher.

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Image source: Getty Images.

Catalysts fueling Rocket Lab stock's rise

Investors received a double dip of positive news in mid-April, when Rocket Lab announced that both the U.S. Air Force and the U.K. Ministry of Defense had selected the company as a contender for contracts in multibillion-dollar programs.

Rocket Lab may bid on contracts available through the U.S. Air Force's Enterprise-Wide Agile Acquisition Contract, a $46 billion program that has several goals, including the rapid development of innovative technologies. Similarly, through its Hypersonic Technologies & Capability Development Framework, the U.K. Ministry of Defense may award Rocket Lab contracts to develop hypersonic capabilities.

Of interest for both programs is Rocket Lab's Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle, a variation of the small orbital rocket Electron.

Addressing the HASTE vehicle, Rocket Lab's CEO Peter Beck said:

The ability to contribute toward the collective security of the United States and the United Kingdom across both of these important programs is a proud moment for the HASTE team, and a demonstration of Rocket Lab's commitment to lead from the front when it comes to innovative and unique solutions for hypersonic technology development.

Later in the month, investors learned that defense contractor Kratos had chosen Rocket Lab to provide its HASTE launch vehicle for a test flight in support of the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program, a five-year, $1.45 billion contract to develop hypersonic technologies.

Rocket Lab stock closed nearly 8% higher the day after the company reported the partnership with Kratos.

Is now the time to hitch a ride with Rocket Lab?

While the selections Rocket Lab received regarding its HASTE vehicle may not immediately translate to growth on its income statement, they certainly have the potential to do so in the future. The development of hypersonic capabilities is a top concern for governments looking to retain military advantages over adversaries.

Rocket Lab has distinguished itself as a leader in launch services, as its Electron rocket is the second-most frequently launched vehicle annually, and it'd be unsurprising if it further asserts its prowess as a leader in the hypersonic capabilities that the U.S. and U.K. governments are exploring in the aforementioned programs.

With shares of Rocket Lab down about 10% year to date as of this writing, growth investors looking for space stock exposure would be smart to take a closer look at Rocket Lab stock.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.

Extending the 5.6% decline that it suffered in March, the S&P 500 (SNPINDEX: ^GSPC) inched almost 0.7% lower in April. Of course, there were stocks that bucked the trend and managed to gain altitude last month. Archer Aviation (NYSE: ACHR), for example, ascended 17.2% higher, according to data provided by S&P Global Market Intelligence.

In addition to the company announcing advancements in its goal to bring air taxi service via its electric vertical take-off and landing (eVTOL) aircraft to customers, investors loaded up on shares of Archer after learning of an analyst's auspicious outlook for its stock.

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Image source: Getty Images.

More than one factor lifted shares higher

On April 17, investors gained more insight into Archer's plan for air taxi service in and around New York City. In collaboration with United Airlines, Archer aspires to offer customers the ability to travel from Manhattan to airports located on Long Island, northern New Jersey, and Westchester County on flights that last under 20 minutes -- a considerable time-saver over trips by car that can take as much as several hours, depending on traffic.

Addressing Archer's vision for reimagining travel around the New York metropolitan area, Adam Goldstein, Archer's founder and CEO, said:

The New York region is home to three of the world's preeminent airports, serving upwards of 150 million passengers annually. But the drive from Manhattan to any of these airports can be painful, taking one, sometimes two hours. We want to change that by giving residents and visitors the option to complete trips in mere minutes.

With respect to the company's business in the Middle East, Archer announced that officials in the United Arab Emirates had approved the transformation of a helipad at the Abu Dhabi Cruise Terminal into a hybrid heliport where both helicopters and eVTOL aircraft can operate.

The progress toward developing infrastructure for Archer's eVTOL aircraft is something that investors are watching closely, as the company has suggested that it may begin commercial operations in the UAE as early as the fourth quarter of 2025.

Providing the bulls with more reason to click the buy button, Needham analyst Chris Pierce reiterated a buy rating on Archer stock on April 21 and maintained a $13 price target toward the end of the month. At that time, the price target implied upside of about 80% from where the stock had closed the day prior.

Should investors now aim to buy Archer stock?

Achieving further progress in its march toward commencing commercial operations, Archer notched an important success in Abu Dhabi -- something that investors certainly appreciated. Likewise, its intention of providing air taxi service in and around New York City also earned approval from investors.

Despite the stock's climb in April, shares are still down about 5% year to date, as of this writing. Those scanning the skies for an intriguing growth opportunity should certainly take a closer look at Archer stock right now, undeterred by the stock's recent rise.

Should you invest $1,000 in Archer Aviation right now?

Before you buy stock in Archer Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $701,781!*

Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.