A major ETF company provider is betting artificial intelligence explosion just started.
Roundhill Investments has launched Artificial Intelligence & Technology ETFs (CHAT) less than 20 days ago. It is the first exchange-traded fund designed to track companies involved in synthetic AI and other related technologies.
The company’s chief strategy officer, Dave Mazza, said: “We believe these companies are not just a fad. They are powering something that could be as ubiquitous as the internet itself.”next to ETF” this week. “We’re not talking about hopes and dreams [or] some topic or fads could happen in the next 30 years and could change the world.”
Mazza noted that the fund includes more than just pure-play AI companies like C3.ai but also large-cap tech companies like Microsoft and chip maker AI Nvidia.
Nvidia is the top holding fund at 8%, according to the company’s website. Its shares have risen nearly 42% in the past two months. Since the start of the year, Nvidia stock is up 169%.
“This [AI] is an area that will get a lot of attention,” Mazza said.
His bullish forecast comes amid fears the AI is a price bubble that will burst and destroy the Big Tech rally.
In a recent interview on “fast money,” Dan Suzuki of Richard Bernstein Advisors — a major tech bear since June 2021 — compared the AI rally to the dot-com bubble in the late 1990s.
“People jump from story to story,” the company’s vice president of investment said Wednesday. “I love technology. I think the applications are going to be huge. That doesn’t mean it’s a good investment.”
The CHAT ETF has gained more than 8% since it began trading on May 18.
