Market outlook Nasdaq-100: A benchmark for tomorrow's global economy
When it comes to anchoring your core portfolio, how do the Nasdaq-100 and S&P 500 Indexes compare?
Innovation How non-tech companies are deploying cutting-edge solutions
Key takeaways:
- Some investors may think of the Nasdaq-100 as a tech-heavy index, but innovation extends far beyond Silicon Valley.
- From AI-driven logistics to smart infrastructure, non-tech companies are embracing cutting-edge solutions to help drive growth and efficiency.
- For investors looking for exposure to companies at the forefront of disruption—inside and outside the traditional tech sector—Invesco QQQ offers exposure to many of these market leaders.
Innovation goes beyond the tech sector
Some investors may think of the Nasdaq-100 Index as a tech-heavy index, but innovation extends far beyond Silicon Valley. Companies across industries—including consumer goods, health care, industrials, and telecommunications—are leveraging advanced technology to enhance operations, improve efficiency, and stay ahead in a rapidly changing landscape.
From logistics driven by artificial intelligence (AI) to smart infrastructure, non-tech companies in Invesco QQQ—which tracks the Nasdaq-100—are embracing cutting-edge solutions to help drive growth. Here’s how some of them are reshaping their industries.
Consumer brands optimizing operations
- Starbucks has been at the forefront of digital transformation in the food and beverage industry. The company uses AI-powered predictive analytics to track customer preferences, optimize inventory, and reduce food waste. Deep Brew, Starbucks’ AI-powered platform, enhances decision-making in store operations, while Mobile Order & Pay and voice-enabled ordering with Alexa and Google Assistant continue to improve convenience and customer engagement.
- Costco employs automation and data-driven strategies to streamline its massive supply chain. The retailer uses advanced logistics software to manage inventory across its global warehouse network, helping ensure products are available where and when customers need them. Costco's Kirkland Signature brand benefits from machine learning-driven pricing strategies, while its warehouse robotics improve efficiency in high-demand fulfillment centers.
- Marriott International is redefining hospitality through digital innovation. The company has introduced AI-driven virtual assistants that provide guests with personalized recommendations, helping to enhance their overall stays. The Marriott Bonvoy app enables mobile check-in, keyless entry, and room customization, while the Internet of Things (IoT) enabled “smart hotel rooms” allow guests to control lighting, temperature, and entertainment through a mobile app or voice commands.
Health care companies transforming patient care
Medical innovation isn’t limited to pharmaceutical breakthroughs—companies are deploying cutting-edge digital solutions to improve patient outcomes.
- Dexcom has improved diabetes management with its continuous glucose monitoring (CGM) technology. The company’s wearable sensors provide real-time blood sugar data, allowing users and health care providers to make informed treatment decisions. By integrating cloud-based tracking and AI-powered analytics, Dexcom is enhancing remote patient monitoring and empowering individuals to better manage their health.
- Biogen is leveraging AI and data science to drive breakthroughs in neurology. The company uses machine learning to analyze vast datasets, accelerating the discovery of new treatments for Alzheimer’s, multiple sclerosis, and other neurological disorders. Through strategic partnerships, Biogen is also developing digital biomarkers, helping to personalize treatments and improve patient outcomes.
Industrials enhancing logistics and automation
Advanced technology is helping industrial companies increase efficiency and sustainability in their operations.
- Honeywell integrates artificial intelligence and the IoT into industrial processes to enhance operational efficiency. The company’s AI-driven predictive maintenance systems help identify potential equipment failures before they occur, helping to decrease downtime and improve productivity. Additionally, Honeywell is advancing automation in energy management, giving businesses the opportunity to optimize power usage and reduce costs.
- Old Dominion Freight Line is using real-time tracking and radio frequency identification (RFID) technology to improve the efficiency of freight transportation. The company’s automated dispatch system maintains that shipments are optimized for speed and cost-effectiveness, reducing delivery times. By embracing AI-powered logistics planning, Old Dominion has the potential to enhance route optimization, lower fuel consumption, and provide customers with greater shipment visibility.
Telecommunications shaping the future of connectivity
Faster, more reliable connectivity is critical for modern businesses and consumers, and leading telecommunication providers are pushing innovation forward.
- T-Mobile is expanding its 5G network to enable next-generation connectivity solutions. The company has been investing in ultra-fast, low-latency wireless infrastructure, which supports applications like autonomous vehicles, smart factories, and telemedicine. T-Mobile is also using AI to enhance network performance, dynamically adjusting bandwidth to meet real-time demand.
Utilities investing in smart infrastructure
Energy companies are adopting digital technology to build a more efficient and sustainable future.
- American Electric Power is modernizing the energy grid with AI-powered predictive maintenance and smart grid technology. By deploying real-time data analytics, American Electric Power is working to improve grid stability and reduce the risk of outages. The company is also investing in renewable energy solutions, using AI-driven forecasting to optimize wind and solar power integration.
A broader view of innovation
Innovation is not just about software and semiconductors. Companies in the Nasdaq-100 across multiple sectors are redefining what it means to be forward-thinking, embracing technology to drive competitive advantages.
For investors looking for exposure to companies at the forefront of disruption—inside and outside the traditional tech sector—Invesco QQQ provides exposure to many of these market leaders.
How to invest in QQQ
Select the option that best describes you, or view the QQQ Product Details to take a deeper dive.
Related content
-
-
Market outlook Debunking three myths about QQQ
Learn the truth behind Invesco QQQ ETF as we debunk three common myths surrounding the fund. -
Market outlook Reassessing market concentration in the AI era
Concentrations in investment themes may change over time, but QQQ’s commitment to innovation stays steady.
NA4275446
Past performance is not a guarantee of future results.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional/financial consultant before making any investment decisions.
The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions, there can be no assurance that actual results will not differ materially from expectations.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The Nasdaq-100® Index is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Investment cannot be made directly into an index.
The Internet of Things is the interconnection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data.
The Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange.
The Index and Fund use the Industry Classification Benchmark (“ICB”) classification system which is composed of 11 economic industries: basic materials, consumer discretionary, consumer staples, energy, financials, health care, industrials, real estate, technology, telecommunications and utilities.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 50,000 Shares.
This content should not be construed as an endorsement for or recommendation to invest in Starbucks, Costco, Marriott International, Dexcom, Biogen, Honeywell, Old Dominion Freight Line, T-Mobile, nor American Electric Power. None of the companies mentioned herein are affiliated with Invesco. Only 9 of 101 underlying Invesco QQQ ETF fund holdings are featured: Starbucks, Costco, Marriott International, Dexcom, Biogen, Honeywell, Old Dominion Freight Line, T-Mobile, and American Electric Power. The holdings are meant to help illustrate representative innovative themes, not serve as a recommendation of individual securities. Holdings are subject to change and are not buy/sell recommendations. See invesco.com/qqq for current holdings. As of 2/25/25, Starbucks, Costco, Marriott International, Dexcom, Biogen, Honeywell, Old Dominion Freight Line, T-Mobile, and American Electric Power made up 0.82%, 2.96%, 0.49%, 0.22%, 0.13%, 0.87%, 0.24%, 1.99%, 0.36% respectively, of Invesco QQQ ETF.