CHAT ETF Outperforms Nasdaq Since Inception
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 32 minutes ago
0mins
Source: NASDAQ.COM
- Market Growth Potential: According to Grand View Research, the generative AI market is projected to grow at a 40.8% CAGR from 2026 to 2033, indicating ample investment opportunities as more industries adopt these tools.
- Asset Management Scale: Since its launch in May 2023, the CHAT ETF has amassed $1.75 billion in assets under management and holds 43 stocks, with Nvidia comprising 7.06% of its portfolio, highlighting its significance in AI infrastructure investments.
- Investment Returns: The CHAT ETF has surged nearly 240% since inception, significantly outperforming the S&P 500's 76% and Nasdaq's 106% gains, reflecting its successful investment strategy in AI chipmakers.
- Fee Structure Comparison: CHAT's expense ratio is 0.75%, which is 0.57% higher than the passively managed Invesco QQQ ETF; nevertheless, CHAT is still viewed as a straightforward way to profit from the ongoing expansion of the AI market.
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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: 223.470
Low
200.00
Averages
264.97
High
352.00
Current: 223.470
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.
NVIDIA Reports Strong Q1 Earnings Driven by AI Demand
- Significant Revenue Growth: NVIDIA's Q1 revenues surged 85% year-over-year to $81.6 billion, exceeding market expectations of $78.4 billion, demonstrating the company's robust performance amid soaring AI demand and solidifying its market leadership.
- Strong Data Center Performance: Data Center revenues rose 92% year-over-year to $75.2 billion, primarily driven by Blackwell adoption, indicating rapid expansion of demand for NVIDIA's AI infrastructure, particularly in edge computing and enterprise deployments.
- New Market Platform Strategy: NVIDIA is restructuring its market into Data Center and Edge Computing, with further segmentation of Data Center revenues into Hyperscale and ACIE, reflecting a deeper understanding of AI applications across diverse environments and strategic adjustments that are expected to drive future growth.
- Cash Flow and Shareholder Returns: Free cash flow reached a record $48.6 billion, with NVIDIA returning approximately $20 billion to shareholders in the quarter and raising its quarterly dividend from $0.01 to $0.25, showcasing the company's strong cash generation capabilities and commitment to shareholders.
See More
Kawasaki Heavy Partners with Nvidia to Develop Robotics AI Solutions
- Development Center Launch: Kawasaki Heavy Industries will establish a joint development center in San Jose, California, in collaboration with Nvidia, focusing on robotics solutions in the medical and mobility sectors, which is expected to enhance the company's competitiveness in the global physical AI market.
- Technology Integration: Kawasaki's medical support robots will leverage Nvidia's AI technology to enhance capabilities in advanced tasks such as specimen handling and environmental recognition, thereby improving the efficiency and accuracy of medical services.
- Talent Acquisition Strategy: Kawasaki plans to hire AI engineers locally, aiming to expand the center's workforce to dozens within a few years, which will support its technological development and market expansion in the U.S.
- Global R&D Strategy: In addition to the California center, Kawasaki will accelerate physical AI research and development in France and Japan, showcasing innovations in robotics integrated into semiconductor manufacturing tools, further strengthening its influence in the global market.
See More
Rapid Growth of Generative AI Market Drives Tech Stocks
- Market Growth Potential: According to Grand View Research, the generative AI market is projected to expand at a 40.8% CAGR from 2026 to 2033, indicating a strong trend of widespread industry adoption that attracts investor interest.
- ETF Investment Opportunity: The Roundhill Generative AI & Technology ETF (CHAT) has reached $1.75 billion in assets under management since its May 2023 launch, holding 43 stocks and providing a convenient option for investing in the generative AI space, especially with its nearly 240% rise since inception.
- Portfolio Performance: CHAT's top six holdings include Nvidia (7.06%), Alphabet (6.56%), and AMD (5.70%), outperforming the S&P 500's 76% and Nasdaq's 106% gains, highlighting its significance in the AI ecosystem.
- Cost vs. Returns Comparison: Although CHAT's management fee is 0.57% higher than the passively managed Invesco QQQ ETF, its growth rate since inception remains substantial, indicating that investors can achieve higher return potential through CHAT amid the AI market expansion.
See More
Nvidia Exceeds Expectations in Q1 Earnings Report
- Earnings Beat: Nvidia reported adjusted earnings of $1.87 per share and revenue exceeding $81.6 billion for Q1 FY2027, significantly surpassing Wall Street analyst expectations, indicating robust market performance and profitability.
- Optimistic Revenue Guidance: The company provided a revenue guidance of $91 billion for the current quarter, well above the analyst consensus of $87 billion, suggesting sustained growth potential and strong market demand in the AI sector.
- Increased Shareholder Returns: Nvidia raised its quarterly dividend to $0.25 per share from $0.01, a 25-fold increase, and authorized an additional $80 billion in share repurchases, reflecting the company's commitment to shareholder value and a shift in capital allocation strategy.
- Signals of Slowing Growth: Despite achieving an 85% year-over-year growth rate and a 140% increase in EPS for Q1 FY2027, concerns about potential growth slowdown have intensified, indicating the company may be transitioning into a more mature phase.
See More
US Stock Market Pressured by Rising Oil Prices Amid Iran Tensions
- Oil Price Surge Impacts Market: The S&P 500 index fell 0.35%, the Dow Jones Industrial Average dropped 0.11%, and the Nasdaq 100 index decreased 0.51% as crude oil prices rose over 2% due to tensions between the US and Iran, indicating market concerns over potential energy supply disruptions.
- Mixed Economic Data: Initial US weekly unemployment claims fell by 3,000 to 209,000, close to expectations, while the May Philadelphia Fed business outlook survey unexpectedly dropped to -0.4, reflecting uncertainty in economic recovery that could affect investor confidence.
- Weak Performance in Tech Stocks: Nvidia's earnings beat expectations but its stock fell over 1% amid rising competition, and Intuit plummeted more than 19% due to revenue falling short of forecasts, highlighting challenges within the tech sector.
- International Market Volatility: Overseas markets showed mixed results, with the Euro Stoxx 50 down 0.02%, China's Shanghai Composite falling 2.04%, while Japan's Nikkei index rose 3.14%, reflecting global economic uncertainty and divergent investor sentiment.
See More
CHAT ETF Outperforms Nasdaq Since Inception
- Market Growth Potential: According to Grand View Research, the generative AI market is projected to grow at a 40.8% CAGR from 2026 to 2033, indicating ample investment opportunities as more industries adopt these tools.
- Asset Management Scale: Since its launch in May 2023, the CHAT ETF has amassed $1.75 billion in assets under management and holds 43 stocks, with Nvidia comprising 7.06% of its portfolio, highlighting its significance in AI infrastructure investments.
- Investment Returns: The CHAT ETF has surged nearly 240% since inception, significantly outperforming the S&P 500's 76% and Nasdaq's 106% gains, reflecting its successful investment strategy in AI chipmakers.
- Fee Structure Comparison: CHAT's expense ratio is 0.75%, which is 0.57% higher than the passively managed Invesco QQQ ETF; nevertheless, CHAT is still viewed as a straightforward way to profit from the ongoing expansion of the AI market.
See More
NVIDIA Reports Strong Q1 Earnings Driven by AI Demand
- Significant Revenue Growth: NVIDIA's Q1 revenues surged 85% year-over-year to $81.6 billion, exceeding market expectations of $78.4 billion, demonstrating the company's robust performance amid soaring AI demand and solidifying its market leadership.
- Strong Data Center Performance: Data Center revenues rose 92% year-over-year to $75.2 billion, primarily driven by Blackwell adoption, indicating rapid expansion of demand for NVIDIA's AI infrastructure, particularly in edge computing and enterprise deployments.
- New Market Platform Strategy: NVIDIA is restructuring its market into Data Center and Edge Computing, with further segmentation of Data Center revenues into Hyperscale and ACIE, reflecting a deeper understanding of AI applications across diverse environments and strategic adjustments that are expected to drive future growth.
- Cash Flow and Shareholder Returns: Free cash flow reached a record $48.6 billion, with NVIDIA returning approximately $20 billion to shareholders in the quarter and raising its quarterly dividend from $0.01 to $0.25, showcasing the company's strong cash generation capabilities and commitment to shareholders.
See More
Kawasaki Heavy Partners with Nvidia to Develop Robotics AI Solutions
- Development Center Launch: Kawasaki Heavy Industries will establish a joint development center in San Jose, California, in collaboration with Nvidia, focusing on robotics solutions in the medical and mobility sectors, which is expected to enhance the company's competitiveness in the global physical AI market.
- Technology Integration: Kawasaki's medical support robots will leverage Nvidia's AI technology to enhance capabilities in advanced tasks such as specimen handling and environmental recognition, thereby improving the efficiency and accuracy of medical services.
- Talent Acquisition Strategy: Kawasaki plans to hire AI engineers locally, aiming to expand the center's workforce to dozens within a few years, which will support its technological development and market expansion in the U.S.
- Global R&D Strategy: In addition to the California center, Kawasaki will accelerate physical AI research and development in France and Japan, showcasing innovations in robotics integrated into semiconductor manufacturing tools, further strengthening its influence in the global market.
See More
Rapid Growth of Generative AI Market Drives Tech Stocks
- Market Growth Potential: According to Grand View Research, the generative AI market is projected to expand at a 40.8% CAGR from 2026 to 2033, indicating a strong trend of widespread industry adoption that attracts investor interest.
- ETF Investment Opportunity: The Roundhill Generative AI & Technology ETF (CHAT) has reached $1.75 billion in assets under management since its May 2023 launch, holding 43 stocks and providing a convenient option for investing in the generative AI space, especially with its nearly 240% rise since inception.
- Portfolio Performance: CHAT's top six holdings include Nvidia (7.06%), Alphabet (6.56%), and AMD (5.70%), outperforming the S&P 500's 76% and Nasdaq's 106% gains, highlighting its significance in the AI ecosystem.
- Cost vs. Returns Comparison: Although CHAT's management fee is 0.57% higher than the passively managed Invesco QQQ ETF, its growth rate since inception remains substantial, indicating that investors can achieve higher return potential through CHAT amid the AI market expansion.
See More
Nvidia Exceeds Expectations in Q1 Earnings Report
- Earnings Beat: Nvidia reported adjusted earnings of $1.87 per share and revenue exceeding $81.6 billion for Q1 FY2027, significantly surpassing Wall Street analyst expectations, indicating robust market performance and profitability.
- Optimistic Revenue Guidance: The company provided a revenue guidance of $91 billion for the current quarter, well above the analyst consensus of $87 billion, suggesting sustained growth potential and strong market demand in the AI sector.
- Increased Shareholder Returns: Nvidia raised its quarterly dividend to $0.25 per share from $0.01, a 25-fold increase, and authorized an additional $80 billion in share repurchases, reflecting the company's commitment to shareholder value and a shift in capital allocation strategy.
- Signals of Slowing Growth: Despite achieving an 85% year-over-year growth rate and a 140% increase in EPS for Q1 FY2027, concerns about potential growth slowdown have intensified, indicating the company may be transitioning into a more mature phase.
See More
US Stock Market Pressured by Rising Oil Prices Amid Iran Tensions
- Oil Price Surge Impacts Market: The S&P 500 index fell 0.35%, the Dow Jones Industrial Average dropped 0.11%, and the Nasdaq 100 index decreased 0.51% as crude oil prices rose over 2% due to tensions between the US and Iran, indicating market concerns over potential energy supply disruptions.
- Mixed Economic Data: Initial US weekly unemployment claims fell by 3,000 to 209,000, close to expectations, while the May Philadelphia Fed business outlook survey unexpectedly dropped to -0.4, reflecting uncertainty in economic recovery that could affect investor confidence.
- Weak Performance in Tech Stocks: Nvidia's earnings beat expectations but its stock fell over 1% amid rising competition, and Intuit plummeted more than 19% due to revenue falling short of forecasts, highlighting challenges within the tech sector.
- International Market Volatility: Overseas markets showed mixed results, with the Euro Stoxx 50 down 0.02%, China's Shanghai Composite falling 2.04%, while Japan's Nikkei index rose 3.14%, reflecting global economic uncertainty and divergent investor sentiment.
See More
CHAT ETF Outperforms Nasdaq Since Inception
- Market Growth Potential: According to Grand View Research, the generative AI market is projected to grow at a 40.8% CAGR from 2026 to 2033, indicating ample investment opportunities as more industries adopt these tools.
- Asset Management Scale: Since its launch in May 2023, the CHAT ETF has amassed $1.75 billion in assets under management and holds 43 stocks, with Nvidia comprising 7.06% of its portfolio, highlighting its significance in AI infrastructure investments.
- Investment Returns: The CHAT ETF has surged nearly 240% since inception, significantly outperforming the S&P 500's 76% and Nasdaq's 106% gains, reflecting its successful investment strategy in AI chipmakers.
- Fee Structure Comparison: CHAT's expense ratio is 0.75%, which is 0.57% higher than the passively managed Invesco QQQ ETF; nevertheless, CHAT is still viewed as a straightforward way to profit from the ongoing expansion of the AI market.
See More
