EXCLUSIVE: Roundhill's AI, Magnificent 7 ETFs Shine In Tech Market Rally, Draw $100M Inflow In 1 Month
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2024
0mins
Should l Buy NVDA?
Source: Business Insider
- Performance of Roundhill Investments ETFs: Roundhill Investments has seen a significant increase in the performance of its ETFs, particularly those related to the Magnificent Seven and artificial intelligence stocks.
- Strategic Approach and Inflows: The Roundhill Magnificent Seven ETF and Generative AI & Technology ETF have surged about 15% since the start of the year, outperforming tech-heavy ETFs like Invesco QQQ Trust.
- Investor Inflows and Assets Under Management: The two funds have attracted the highest inflows within Roundhill's ETF suite, with close to $100 million in fresh investments in the last month.
- Equal-Weight Strategy and Stock Selection: The Magnificent Seven ETF follows an equal-weight strategy, with Nvidia Corp. holding the largest position. The Generative AI & Technology ETF focuses on companies with 50% or more revenue from AI-related business.
- Metaverse Conviction and Diversified Themes: Roundhill emphasizes the enduring potential of the metaverse. They offer various thematic ETFs including sports betting, cannabis, and Bitcoin strategies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 190.050
Low
200.00
Averages
264.97
High
352.00
Current: 190.050
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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's Earnings Outlook Remains Positive as Shares Rise
- Stock Performance: Nvidia shares rose 1.8% in premarket trading on Wednesday, reflecting market optimism ahead of its upcoming earnings report, particularly as UBS analysts noted a “favorable” financial setup.
- Earnings Expectations: UBS analyst Timothy Arcuri reiterated his Buy rating and raised the price target from $235 to $245, anticipating Nvidia's revenue to reach approximately $76 billion, surpassing the market's expectations of $74 billion to $75 billion for the next quarter.
- Gross Margin Outlook: Despite investor skepticism regarding the 75% gross margin guidance, Arcuri stated that there are no near-term factors likely to impact this figure, indicating Nvidia's stability amid competitive threats from Google and Broadcom.
- Market Signals: As the GTC conference approaches, Nvidia's management appears frustrated with prevailing market doubts, yet bullish supply chain signals support the company's prospects for growth and margin sustainability.
See More
Hyperscalers' AI Spending Surge Raises Market Concerns
- Spending Plans Overview: Alphabet plans to increase its AI spending from $91 billion in 2025 to $180 billion by 2026, while Microsoft reported $37.5 billion in Q2 2023, up from $34.9 billion in Q1, and Amazon aims to raise its spending to $200 billion in 2026, indicating a strong commitment to AI investments.
- TSMC's Market Outlook: Taiwan Semiconductor Manufacturing Company (TSMC) expects its capital expenditures to rise from $41 billion in 2025 to $54 billion, with management highlighting increased capacity to meet demand during the Q4 earnings call, leading to positive market sentiment regarding its potential benefits from the AI spending surge.
- Nvidia's Growth Potential: As a leading GPU provider, Nvidia's cloud products are sold out, and it anticipates AI spending could reach $3 to $4 trillion over the next decade, with management asserting that the company is still in the early stages of AI development and will continue to launch more powerful products to maintain its competitive edge.
- Applied Digital's Successful Pivot: Applied Digital has shifted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, and despite currently being unprofitable, it reported a 250% year-over-year sales increase in Q2 2026, indicating strong market demand and positioning for future growth.
See More
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
Bullish Outlook for AI Stocks Amid Spending Surge
- Surge in Capital Expenditures: Amazon plans to spend $200 billion in 2026, with Alphabet and Meta at $185 billion and $135 billion respectively, totaling over $500 billion, indicating that AI infrastructure development is accelerating despite market skepticism about AI spending.
- Opportunities for Nvidia and Broadcom: As major computing unit suppliers, Nvidia and Broadcom are expected to benefit from this massive spending, with analysts projecting a 52% revenue growth for both companies this fiscal year, highlighting that the AI boom is far from over.
- Market Reaction Misalignment: Despite the decline in Nvidia and Broadcom's stock prices due to market sentiment, investors should seize the current undervalued buying opportunity, especially as Nvidia's P/E ratio stands at 24 times, significantly lower than Broadcom's 32 times.
- Technological Collaboration Driving Growth: The soaring demand for Broadcom's TPU chips, developed in collaboration with Alphabet, is expected to further boost Broadcom's sales, reflecting the increasing need for custom chips among AI hyperscalers.
See More
Micron Technology Seizes AI Hardware Opportunity
- Market Value Surge: Micron Technology's market capitalization has reached $46.2 billion, with a 317% increase in share price over the past 12 months, indicating strong growth driven by AI demand and suggesting potential for substantial profits in the future.
- Surge in AI Hardware Demand: As major tech companies are projected to spend over $700 billion in 2026, the demand for Micron's high-bandwidth memory chips is skyrocketing, enhancing the company's competitiveness in the AI data center market and potentially narrowing the gap with Nvidia.
- Production Capacity Expansion: Micron plans to invest $200 billion to expand dynamic random access memory (DRAM) capacity to address the memory chip shortage expected to last until 2027, aiming to leverage high short-term demand to increase market share.
- Attractive Valuation: With a forward price-to-earnings (P/E) ratio of 12.5, Micron's shares trade at nearly half of Nvidia's forward P/E of 24, reflecting market uncertainty about memory hardware margins and leaving ample room for continued growth, making the stock a buy opportunity.
See More
Broadcom's Growth Potential Remains Strong
- Significant Revenue Growth: Broadcom's revenue grew at a 22% CAGR from $23.9 billion to $63.9 billion from fiscal 2020 to 2025, demonstrating strong performance in the AI market and sustained demand.
- Surge in AI Chip Sales: In fiscal 2025, Broadcom's AI chip revenue surged 65% to $20 billion, accounting for 31% of total revenue, effectively offsetting slower growth in non-AI chip and infrastructure software businesses, indicating its competitiveness in the customized AI accelerator market.
- Optimistic Future Outlook: Broadcom aims to achieve annualized AI chip revenues of $60 billion to $90 billion by fiscal 2027, primarily from three hyperscale customers, reflecting strong demand from cloud giants for Broadcom's custom AI accelerators and further solidifying its market position.
- Ongoing Acquisition Strategy: Broadcom plans to continue acquiring more companies to bolster its AI chipmaking and infrastructure software businesses, with analysts projecting revenue and adjusted EBITDA growth at CAGRs of 38% and 36% from fiscal 2025 to 2028, highlighting its long-term expansion potential in mobile, automotive, and industrial sectors.
See More
Nvidia's Earnings Outlook Remains Positive as Shares Rise
- Stock Performance: Nvidia shares rose 1.8% in premarket trading on Wednesday, reflecting market optimism ahead of its upcoming earnings report, particularly as UBS analysts noted a “favorable” financial setup.
- Earnings Expectations: UBS analyst Timothy Arcuri reiterated his Buy rating and raised the price target from $235 to $245, anticipating Nvidia's revenue to reach approximately $76 billion, surpassing the market's expectations of $74 billion to $75 billion for the next quarter.
- Gross Margin Outlook: Despite investor skepticism regarding the 75% gross margin guidance, Arcuri stated that there are no near-term factors likely to impact this figure, indicating Nvidia's stability amid competitive threats from Google and Broadcom.
- Market Signals: As the GTC conference approaches, Nvidia's management appears frustrated with prevailing market doubts, yet bullish supply chain signals support the company's prospects for growth and margin sustainability.
See More
Hyperscalers' AI Spending Surge Raises Market Concerns
- Spending Plans Overview: Alphabet plans to increase its AI spending from $91 billion in 2025 to $180 billion by 2026, while Microsoft reported $37.5 billion in Q2 2023, up from $34.9 billion in Q1, and Amazon aims to raise its spending to $200 billion in 2026, indicating a strong commitment to AI investments.
- TSMC's Market Outlook: Taiwan Semiconductor Manufacturing Company (TSMC) expects its capital expenditures to rise from $41 billion in 2025 to $54 billion, with management highlighting increased capacity to meet demand during the Q4 earnings call, leading to positive market sentiment regarding its potential benefits from the AI spending surge.
- Nvidia's Growth Potential: As a leading GPU provider, Nvidia's cloud products are sold out, and it anticipates AI spending could reach $3 to $4 trillion over the next decade, with management asserting that the company is still in the early stages of AI development and will continue to launch more powerful products to maintain its competitive edge.
- Applied Digital's Successful Pivot: Applied Digital has shifted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, and despite currently being unprofitable, it reported a 250% year-over-year sales increase in Q2 2026, indicating strong market demand and positioning for future growth.
See More
AI Drives Exponential Growth in Capital Expenditure
- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
See More
Bullish Outlook for AI Stocks Amid Spending Surge
- Surge in Capital Expenditures: Amazon plans to spend $200 billion in 2026, with Alphabet and Meta at $185 billion and $135 billion respectively, totaling over $500 billion, indicating that AI infrastructure development is accelerating despite market skepticism about AI spending.
- Opportunities for Nvidia and Broadcom: As major computing unit suppliers, Nvidia and Broadcom are expected to benefit from this massive spending, with analysts projecting a 52% revenue growth for both companies this fiscal year, highlighting that the AI boom is far from over.
- Market Reaction Misalignment: Despite the decline in Nvidia and Broadcom's stock prices due to market sentiment, investors should seize the current undervalued buying opportunity, especially as Nvidia's P/E ratio stands at 24 times, significantly lower than Broadcom's 32 times.
- Technological Collaboration Driving Growth: The soaring demand for Broadcom's TPU chips, developed in collaboration with Alphabet, is expected to further boost Broadcom's sales, reflecting the increasing need for custom chips among AI hyperscalers.
See More
Micron Technology Seizes AI Hardware Opportunity
- Market Value Surge: Micron Technology's market capitalization has reached $46.2 billion, with a 317% increase in share price over the past 12 months, indicating strong growth driven by AI demand and suggesting potential for substantial profits in the future.
- Surge in AI Hardware Demand: As major tech companies are projected to spend over $700 billion in 2026, the demand for Micron's high-bandwidth memory chips is skyrocketing, enhancing the company's competitiveness in the AI data center market and potentially narrowing the gap with Nvidia.
- Production Capacity Expansion: Micron plans to invest $200 billion to expand dynamic random access memory (DRAM) capacity to address the memory chip shortage expected to last until 2027, aiming to leverage high short-term demand to increase market share.
- Attractive Valuation: With a forward price-to-earnings (P/E) ratio of 12.5, Micron's shares trade at nearly half of Nvidia's forward P/E of 24, reflecting market uncertainty about memory hardware margins and leaving ample room for continued growth, making the stock a buy opportunity.
See More
Broadcom's Growth Potential Remains Strong
- Significant Revenue Growth: Broadcom's revenue grew at a 22% CAGR from $23.9 billion to $63.9 billion from fiscal 2020 to 2025, demonstrating strong performance in the AI market and sustained demand.
- Surge in AI Chip Sales: In fiscal 2025, Broadcom's AI chip revenue surged 65% to $20 billion, accounting for 31% of total revenue, effectively offsetting slower growth in non-AI chip and infrastructure software businesses, indicating its competitiveness in the customized AI accelerator market.
- Optimistic Future Outlook: Broadcom aims to achieve annualized AI chip revenues of $60 billion to $90 billion by fiscal 2027, primarily from three hyperscale customers, reflecting strong demand from cloud giants for Broadcom's custom AI accelerators and further solidifying its market position.
- Ongoing Acquisition Strategy: Broadcom plans to continue acquiring more companies to bolster its AI chipmaking and infrastructure software businesses, with analysts projecting revenue and adjusted EBITDA growth at CAGRs of 38% and 36% from fiscal 2025 to 2028, highlighting its long-term expansion potential in mobile, automotive, and industrial sectors.
See More
