Quick Takes 02

arrows-left arrows-right

How AI could accelerate nanotechnology growth

Quick Takes | September 11, 2026

Simeon Hyman, CFA, Global Investment Strategist

Key Takeaways
  • AI-related infrastructure spending is supporting demand for semiconductors and semiconductor equipment, which represented approximately 66% of the Solactive Nanotechnology Index as of June 30, 2026.
  • AI-enabled research and testing tools could accelerate product development across parts of the broader nanotechnology sector.
  • ProShares Nanotechnology ETF (TINY) invests in dozens of companies with exposure to the rising nanotechnology theme—all in one convenient trade.
How could AI support nanotechnology growth?

Advanced chip fabrication depends on nanoscale manufacturing, linking parts of the nanotechnology ecosystem to AI infrastructure spending. BlackRock estimates that global data center spending could exceed $10 trillion over the next five years, reflecting the scale of infrastructure investment contemplated for the AI buildout.[1]

How does TINY provide nanotechnology exposure?

ProShares Nanotechnology ETF (TINY) is designed to track the Solactive Nanotechnology Index. TINY invests in a global portfolio of companies at the forefront of the emerging nanotechnology theme.

TINY’s holdings may be closely tied to the booming manufacture of chips, memory, data centers, and related tools supporting AI expansion. As of June 30, 2026, semiconductor and semiconductor equipment companies represented approximately 66% of the Solactive Nanotechnology Index by weight.[2]

Competition and the need for nanoscale manufacturing to support increasingly complex chips and chip systems suggest that companies that measure, test, package, and cool advanced chips could see continued demand.

Index Sector Weightings (%)

Quick-Take-TINY_Index Breakdown_pie.pngSource: ProShares, as of 6/30/26. Holdings subject to change. Sum of weightings may not equal 100% due to rounding. For current holdings, view the TINY product page.

How could AI accelerate nanotechnology development?

AI-enabled efficiencies could accelerate product development across portions of TINY’s broader, still-emerging nanotechnology exposure.

For example, potential success for many nanotechnology applications depends on trial and error at a massive scale. Large-scale experimentation in drug development, advanced materials creation, or consumer goods research could all benefit from use of advanced AI model at a microscopic scale.

Continued semiconductor investment could support near-term demand for parts of the nanotechnology ecosystem, while TINY may also provide longer-term exposure to AI-enabled product development across the broader nanotechnology sector.

[1] Source: BlackRock Fundamental Equities analysis of AI-related capex spending through 2030, as of July 2026.

[2] Source: ProShares, as of 6/30/26. Holdings are subject to change. ProShares may invest in financial instruments (including derivatives) that, in combination, should have daily price return characteristics similar to the fund's benchmark.

Learn More

TINY

Nanotechnology ETF

Seeks investment results, before fees and expenses, that track the performance of the Solactive Nanotechnology Index.

Get the latest perspectives and updates.

Important Information.

Investing involves risk, including the possible loss of principal. This ProShares ETF is subject to certain risks, including the risk that the fund may not track the performance of the index and that the fund’s market price may fluctuate, which may decrease performance. Please see their summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.

Shares of any ETF are generally bought and sold at market price (not NAV) and are not individually redeemed from the fund. Your brokerage commissions will reduce returns.

Investments in nanotechnology are subject to risks associated with a developing industry and there is no guarantee that these companies will be successful.

Nanotechnology companies may have limited product lines, markets, and resources. Such companies are subject to risks such as intense competition; impairment of intellectual property rights; changing consumer preferences and product obsolescence; evolving industry standards and regulations; scientific technology and commercialization risks; security and privacy failures or constraints; and the impact of research and development costs. The index theme may not be the primary driver of company, index or fund performance. Companies in the index may have significant unrelated business lines, which could have a significant negative impact on company, index and fund performance.

This fund may be subject to additional risks associated with the pharmaceuticals, biotechnology and life sciences industry, as well as the semiconductor and semiconductor equipment industry. A more complete discussion of risks is found in the prospectus.

This fund is non-diversified and concentrates its investments in certain sectors. Non-diversified and narrowly focused investments typically exhibit higher volatility.

Investments in non-U.S. securities may involve risks different from U.S. securities, including risks from geographic concentration, differences in valuation and valuation times, unfavorable fluctuations in currency, differences in generally accepted accounting principles, and from economic or political instability.

Investments in emerging markets generally are less liquid, more volatile and riskier than investments in more developed markets and are considered to be speculative.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.

"Solactive AG," a registered trademark of Solactive AG, and the “Solactive Nanotechnology Index” has been licensed for use by ProShare Advisors LLC. ProShares based on the Solactive Nanotechnology Index are not sponsored, endorsed, sold, or promoted by Solactive AG and they make no representation regarding the legality or suitability of ProShares, or the advisability of investing in ProShares. SOLACTIVE AG AND ITS AFFILIATES MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AND BEAR NO LIABILITY WITH RESPECT TO THE INDEXES, PROSHARES, OR THE FUND. Solactive AG uses its best efforts to ensure that the index is calculated correctly. Solactive AG has no obligation to point out errors in the index to third parties, including but not limited to investors and/or financial intermediaries.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds’ advisor or sponsor.

Your use of this site signifies that you accept our Terms and Conditions of Use.