Navigating the AI Revolution: FELG vs. IWF in the Era of OpenAI's Strategic Alliances

The AI revolution is no longer a distant promise—it's a seismic shift reshaping markets, supply chains, and investor portfolios. OpenAI's recent strategic alliances with Advanced Micro Devices (AMD), Broadcom, and Nvidia have turbocharged this transformation, creating a fragmented yet explosive AI hardware landscape, according to a Forbes analysis. For investors, the question isn't whether to bet on AI—it's how to position their portfolios to capitalize on the winners. Enter the Fidelity Enhanced Large Cap Growth ETF (FELG) and the iShares Russell 1000 Growth ETF (IWF), two funds with distinct exposure to the companies driving this revolution. Let's break down which one offers a sharper edge in this high-stakes game.

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OpenAI's Power Play: A New Era of AI Hardware

OpenAI's partnerships are rewriting the rules of the game. By securing 6 gigawatts of AMD Instinct GPUs and a $100 billion investment in Nvidia's data centers, the Forbes analysis notes, the lab is diversifying its supply chain while locking in long-term access to cutting-edge compute power. But the real fireworks come from its collaboration with Broadcom to co-develop custom AI accelerators, as outlined in a SharperTrades post. This isn't just about hardware—it's about vertical integration, with OpenAI now controlling everything from silicon design to model training.

The implications? A fragmented market where multi-vendor architectures and custom silicon dominate. AMD and Broadcom are already reaping the rewards: Broadcom's stock surged 10% post-announcement, while AMD's partnership includes a financial structure that could see OpenAI own 9% of its shares, per the Forbes analysis. For investors, this means two things: volatility and opportunity.

FELG vs.

IWF: Who Holds the Keys to the Kingdom?

Let's start with the numbers. As of October 2025, FELG is a concentrated bet on tech giants, with NVIDIA at 13.81%, Apple at 11.46%, and Broadcom at 5.32% of its portfolio, according to the FELG holdings page. IWF, by contrast, spreads its bets wider, holding 396 stocks with NVIDIA at 13.11%, Microsoft at 11.61%, and Broadcom at 4.67%, based on the IWF holdings page. At first glance, FELG's heavier weighting in Broadcom and its absence of AMD (not listed in top holdings) might seem like a disadvantage. But dig deeper, and the story shifts.

FELG's active strategy—enhanced to track the Russell 1000® Growth Index—gives it more flexibility to overweight high-growth names like Broadcom, which is now central to OpenAI's custom silicon push (see the FELG holdings page). Meanwhile, IWF's passive approach, while diversified, dilutes exposure to the very companies OpenAI is betting on. For example, AMD isn't explicitly listed in IWF's top holdings (per the IWF holdings page), even as its partnership with OpenAI could unlock billions in AI infrastructure demand.

The AMD Wild Card: A Missed Opportunity or a Strategic Choice?

Here's where the rubber meets the road. OpenAI's AMD deal is a $100+ billion gamble on next-gen GPUs, with potential equity stakes for the chipmaker, as the Forbes analysis outlines. Yet AMD isn't a top holding in either ETF. FELG includes it in its 107-stock portfolio but doesn't disclose its weight on the FELG holdings page, while IWF's broad Russell 1000 Growth Index likely holds AMD at a lower, less impactful level.

This isn't a flaw—it's a feature for FELG. By focusing on large-cap growth stocks, it avoids the volatility of smaller, less-established AI players. But in a market where OpenAI's partnerships are driving hypergrowth in specific sectors, FELG's concentrated bets on NVIDIA and Broadcom could outperform IWF's diluted exposure. Consider this: Broadcom's 10% post-announcement surge was fueled by its role in OpenAI's custom silicon project, a win FELG's 5.32% weighting captures more directly than IWF's 4.67%.

Risk vs.

Reward: Who's Better Positioned?

The answer hinges on your risk tolerance. FELG's heavy tech tilt makes it a rollercoaster—NVIDIA's 13.81% stake means it'll soar if AI demand accelerates but could plummet if the sector stumbles. IWF's broader spread offers stability, with exposure to 396 stocks including Amazon and Tesla, per the IWF holdings page, but it's less likely to capitalize on the AI megatrend's full potential.

For investors betting on OpenAI's vision—custom silicon, multi-vendor ecosystems, and a future where AI models are as scalable as cloud computing—FELG's aggressive positioning in NVIDIA and Broadcom is a strategic advantage. IWF, while safer, may lag in a market where winners are defined by their proximity to OpenAI's roadmap.

Final Call: Ride the AI Express with FELG

This isn't a call to ignore IWF—it's a solid, diversified fund for long-term growth. But if you're looking to ride the AI wave, FELG's concentrated bets on the companies directly shaping OpenAI's future are hard to beat. With NVIDIA and Broadcom already surging and AMD's potential still untapped, FELG offers a front-row seat to the next industrial revolution.

As the saying goes, "He who hesitates is lost." In the AI arms race, positioning matters—and FELG is loading its guns faster than IWF.