Global Courant
A major provider of ETF firms is betting that the artificial intelligence boom is just getting started.
Roundhill Investments launched the Generative AI & Technology ETF (CHAT) less than 20 days ago. It is the first-ever exchange-traded fund designed to track companies involved in generative AI and other related technologies.
“These companies, we don’t think, are just a fad. They’re fueling something that could be as ubiquitous as the internet itself,” the company’s chief strategy officer, Dave Mazza, told “ETF Edge” this week. “We’re not talking about hopes and dreams (or) a theme or craze that could happen 30 years in the future and change the world.”
Mazza notes that the fund doesn’t just include pure play AI companies C3.ai as well as large-cap technology companies such as Microsoft and AI chipmaker Nvidia.
According to the company’s website, Nvidia is the fund’s largest holding at 8%. Shares are up nearly 42% in the past two months. Since the beginning of the year, Nvidia shares are up 169%.
“This (AI) is an area that will get a lot of attention,” said Mazza.
His bullish forecast comes amid concerns that AI is a price bubble that will burst and destroy the Big Tech rally.
In a recent interview on CNBC’s “Fast Money,” Richard Bernstein Advisors’ Dan Suzuki — a Big Tech bear since June 2021 — compared the AI rally to the dot-com bubble of the late 1990s.
“People jump from story to story,” the company’s deputy chief investment officer said Wednesday. “I like the technology. I think the applications will be huge. That doesn’t mean it’s a good investment.”
The CHAT ETF is up more than 8% since its inception on May 18.
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