For advisors and investors seeking to capitalize on the most compelling opportunities in the equity markets, keeping a close eye on the artificial intelligence (AI) sector has oftentimes been a solid strategy.
Ever since ChatGPT changed the way the world looks at AI, investment opportunities have continued to pop up as the sector grows. However, the next big opportunities to benefit from AI evolution might come from outside the technology sector this time.
Recently, the experts at BNY Investments took a deep dive into the AI sector, in order to showcase where the next key investment opportunities may lie. To begin, the BNY Investments team noted that the growth of AI investing can largely be viewed as three different waves.
The first wave focused on infrastructure, hardware, and semiconductors. As BNY Investments noted, this included “significant capital investment by large hyperscalers” to ramp up AI workloads and data centers.
From there, the second wave focused on getting a sufficient power system together to support rapidly scaling AI operations. According to the U.S. Energy Information Administration (EIA), U.S. data-centers are projected to increase power usage from 2% of total consumption in 2020 to about 7.5% by 2030.
According to the BNY team, we are now in the third wave, which centers on widespread adoption across a variety of sectors. This may be the moment when the years of AI spending and innovation pay off, as companies and sectors across the globe integrate AI into their workflows. In particular, BNY highlights the retail, healthcare, finance, and advertising sectors as ones that may significantly benefit from AI.
How Value ETFs Could Benefit From AI’s Third Wave
AI’s third wave could represent a broadening opportunity set of companies for investors to capitalize with. Businesses that adopt AI into their operations could ramp up productivity and expand their valuations at a rapid pace.
As BNY notes, the third wave of AI investing could create tantalizing opportunities for value investors. Experienced value investors can examine a company’s fundamentals to pick up discounted stocks that could thus see significant acceleration powered by AI adoption.
Those looking to expand their exposure to value stocks may want to take a look at the BNY Mellon Dynamic Value ETF (BKDV). BKDV, a fund from BNY, takes an active approach to value investing. Given the rapid pace of artificial intelligence adoption, having active portfolio managers at the helm could significantly help advisors meet the moment.
BKDV approaches value investing through its blend of quantitative and fundamental research. This research emphasizes three factors in particular: intrinsic value, sound business fundamentals, and positive business momentum. BKDV’s bottom-up strategy can help the fund locate the kind of companies that could see significant long-term returns powered by AI adoption.
Lately, BKDV has seen significant interest from the broader investment community. FactSet data shows that as of October 10, 2025, the fund has seen about $127 million in net flows over the last three months.
Originally published on ETF Trends
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