Artificial intelligence is not a fad? New fund capitalizes on boom

The first pure play AI fund?

A major ETF company provider is betting artificial intelligence explosion just started.

Roundhill Investments has launched Artificial Intelligence & Technology ETFs (CHAT) less than 20 days ago. It is the first exchange-traded fund designed to track companies involved in synthetic AI and other related technologies.

The company’s chief strategy officer, Dave Mazza, said: “We believe these companies are not just a fad. They are powering something that could be as ubiquitous as the internet itself.”next to ETF” this week. “We’re not talking about hopes and dreams [or] some topic or fads could happen in the next 30 years and could change the world.”

Mazza noted that the fund includes more than just pure-play AI companies like but also large-cap tech companies like Microsoft and chip maker AI Nvidia.

Nvidia is the top holding fund at 8%, according to the company’s website. Its shares have risen nearly 42% in the past two months. Since the start of the year, Nvidia stock is up 169%.

“This [AI] is an area that will get a lot of attention,” Mazza said.

His bullish forecast comes amid fears the AI ​​is a price bubble that will burst and destroy the Big Tech rally.

In a recent interview on “fast money,” Dan Suzuki of Richard Bernstein Advisors — a major tech bear since June 2021 — compared the AI ​​rally to the dot-com bubble in the late 1990s.

“People jump from story to story,” the company’s vice president of investment said Wednesday. “I love technology. I think the applications are going to be huge. That doesn’t mean it’s a good investment.”

The CHAT ETF has gained more than 8% since it began trading on May 18.


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