Due in part to intersections with artificial intelligence (AI), some internet stocks delivered strong performances in 2025, including Google parent Alphabet (GOOGL), which was one of the best-performing mega-cap growth stocks.
Extension of that trend will be important to the 2026 fortunes of ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). The two Nasdaq-100 Index-tracking ETFs feature significant allocations to well-known internet names, including Alphabet, Amazon (AMZN) and Facebook parent Meta Platforms (META), among others. In fact, some of the ETFs’ holdings are among J.P. Morgan analyst Doug Anmuth’s preferred internet ideas for 2026.
“Heading into 2026, we remain constructive on overall digital trends & Internet secular leaders, with AI once again the primary focus across the group,” noted the analyst. “We anticipate our coverage universe will deliver another solid year of revenue growth in 2026, with mega-caps in the low-mid teens Y/Y growth range, with upside potential. However, Operating Income, GAAP EPS, & FCF will be more mixed in 2026, as companies balance revenue growth with key investments, particularly to capitalize on GenAI-related spending.”
QQQ, QQQM Great Ways to Play JPM Picks
The two share classes of Alphabet, which combine for about 7% of the QQQ/QQQM portfolios, could be catalysts for the ETFs this year as the company strengthens its AI product suite. Additionally, the company has other outlets through which it can continue growing its top line at an admirable rate.
“Even after very strong performance… GOOG/L is our top pick into 2026 as we expect AI leadership, full stack strength, data advantages, and global distribution to drive growth acceleration and margin stability,” added Anmuth. “We believe Google can sustain low-mid-teens% Search revenue growth off a large base. AI Search should prove expansionary, driving greater query volumes, improved click quality, and higher prices, offsetting fewer clicks per query. Gemini is once again leading the AI leaderboards, w/Gemini 3.0 faster to deploy across Google and infused within virtually all products. The Gemini App is gaining share with 650M+ MAUs, and we believe robust AI-driven demand will drive acceleration in Cloud growth into the 40’s%+ range.”
The analyst also liked Amazon as a 2026 internet play. That’s relevant to investors considering QQQ and QQQM because that stock is the largest consumer discretionary holding in the ETFs. Yes, consumer spending remains pivotal to the Amazon story, but the company’s fast-growing Amazon Web Services (AWS) unit is a growth driver and the foundation of the firm’s AI efforts.
“We remain bullish into 2026 supported by AWS growth acceleration, solid Stores growth & continued share gains, N.America & Int’l OI margin expansion, and solid AWS margins, all of which we believe support FCF doubling to $59B even against AI-driven capex growth,” concluded Anmuth. “Strong secular growth, workload/tech migrations, & AI contribution/partnerships (including Project Rainier & OpenAI) drive AWS growth acceleration.”
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