WISE ETF Underperforms, Struggles to Keep Up with NVIDIA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: Yahoo Finance
- WISE ETF Performance: The WISE ETF is down 4% year-to-date and up 14.6% over the past year, significantly trailing NVIDIA's 18% YTD gain and 62% annual increase, indicating poor weight allocation between profitable giants and unprofitable software firms.
- Investor Return Gap: Investors choosing WISE in 2025 received only a fraction of NVIDIA's returns, as the fund's promise of exposure to generative AI companies is undermined by the drag from money-losing startups within its portfolio.
- Strong Performance of NVIDIA and AMD: NVIDIA reported Q4 FY2026 revenue of $68.13 billion, up 73% year-over-year, while AMD's revenue for the same quarter was $10.25 billion, up 38%, highlighting robust demand and profitability in the hardware sector, which further emphasizes WISE's portfolio disadvantages.
- Deteriorating Financials of Software Firms: Companies like BigBear.AI and Gorilla Technology within WISE's holdings are unprofitable and growing slowly, making their valuation multiples appear unrealistic, reflecting a declining market confidence in speculative software names.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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