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
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 183.040
Low
200.00
Averages
264.97
High
352.00
Current: 183.040
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.
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- Long-Term Return Potential: Since its inception in 2001, the ETF has averaged a 9.2% annual total return, meaning a $10,000 investment would be worth over $90,000 today, demonstrating its effectiveness as a wealth-building tool.
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See More
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- Cost Control Issues: Despite increasing its sales and marketing budget by 7% and administrative expenses by 60%, StubHub's revenue decline suggests severe challenges in cost management, resulting in a shift from a small profit last year to a significant loss.
- Full-Year Performance: For the full year 2025, sales only fell by 1.4%, but the company reported a staggering loss of $6.27 per share, primarily due to a one-time stock-based compensation charge of $1.4 billion, highlighting ongoing profitability pressures.
- Cash Flow Status: While StubHub achieved positive free cash flow of $2.2 million in Q4 and $159.7 million for the year, the 38% year-over-year decline in free cash flow indicates weakening cash generation capabilities, necessitating improvements for future growth.
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- FAA Certification Progress: Joby is actively working towards obtaining FAA certification by 2026, and despite competition from Boeing's subsidiary Wisk, Joby is widely regarded as leading in the certification race, potentially enabling it to commence commercial operations ahead of competitors.
- Technological Collaboration and Innovation: Joby is partnering with Nvidia to develop autonomous flight capabilities, aiming to enhance flight safety and transition towards autonomous operations, which not only strengthens its competitive position in the TaaS market but may also allow it to capture market share in the future.
- Increased Investment Appeal: Joby's business model is viewed as high-risk, high-reward; although it may lag behind Archer in FAA certification, partnerships with Delta and Toyota mitigate risks while enhancing investment attractiveness, likely drawing more customers to its TaaS model.
See More
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- Market Trend Shift: In 2026, investor focus has shifted towards the semiconductor sector, with global semiconductor sales projected to reach $975 billion, reflecting a robust 26% year-over-year growth that indicates strong market demand and growth potential.
- ETF Performance: The VanEck Semiconductor ETF achieved a 49% return in 2025 and has risen another 12% year-to-date in 2026, benefiting significantly from its concentrated investment strategy in approximately 25 companies amid the AI growth.
- Valuation Risk Warning: The VanEck Semiconductor ETF currently trades at a P/E ratio of 45, and assuming a 26% growth rate, the forward P/E ratio approaches 35, suggesting that the market may have fully priced in growth expectations, with potential for sharp stock price reactions if future performance falls short.
- Dependency Issues: Approximately 30% of the ETF's investments are concentrated in Nvidia and Taiwan Semiconductor, making future performance heavily reliant on these two giants, although the market continues to favor these industry leaders for now.
See More
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- Partnerships with Chipmakers: Meta has signed long-term contracts worth tens of billions with Nvidia and AMD to utilize their GPUs and CPUs for optimizing data centers, which is expected to improve data processing efficiency and further bolster Meta's advertising business.
- AI Inference Performance Boost: The combination of AMD's MI450 GPUs with the Helios architecture is anticipated to deliver better price performance than Nvidia, as AMD customizes chips to optimize Meta's AI models, potentially capturing a larger share of the AI inference market.
- Advertising Business Potential: By enhancing AI algorithms and scaling generative AI applications, Meta is expected to attract more advertisers, particularly small businesses, which will drive increases in ad clicks and conversions, thereby enhancing the profitability of its core business.
See More
