Roundhill Investments, An ETF Firm Provider Launches Fund Designed To Capitalize On A. I Boom

Roundhill Investments, a prominent ETF firm provider, has displayed confidence in the ongoing growth of the artificial intelligence (AI) industry. The company recently introduced the Generative AI & Technology ETF (CHAT), the first exchange-traded fund specifically designed to track companies involved in generative AI and related technologies.

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Dave Mazza, Chief Strategy Officer at Roundhill Investments, emphasized that these AI companies are not just a passing trend but are driving a force that could become as pervasive as the internet itself. Mazza stated, "We're not talking about hopes and dreams or some theme or fad that could happen 30 years in the future, which may change the world."

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The CHAT ETF includes not only pure-play AI companies like C3.ai but also established tech giants such as Microsoft and AI chipmaker Nvidia. Nvidia, in particular, is the fund's top holding at 8%, and its stock has seen a significant increase of nearly 42% in the past two months, reaching a staggering 169% growth since the beginning of the year.

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Mazza believes that the field of AI will continue to attract substantial attention and investment. However, there are concerns that AI may be experiencing a price bubble similar to the dot-com bubble of the late 1990s, potentially leading to a downturn in the Big Tech sector.

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Dan Suzuki, Deputy Chief Investment Officer at Richard Bernstein Advisors, who has been bearish on Big Tech since June 2021, drew parallels between the current AI rally and the dot-com bubble. He cautioned against blindly investing in AI based solely on the technology's potential, emphasizing the need for careful evaluation.

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Since its commencement of trading on May 18, the CHAT ETF has recorded an impressive growth of more than 8%.

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