AI investing: Nvidia, Amazon and a focused ETF

Artificial intelligence has been a key driver of equity markets since early 2023, helping power the S&P 500 (SPX) to a gain of about 78% from 2023 through 2025. A small group of large technology names, often called the Magnificent Seven, has been central to that performance as investors sought exposure to AI-related growth.

Within this context, new vehicles and familiar large-cap stocks are giving investors multiple paths into the AI trend, from an AI-focused exchange-traded fund to individual leaders such as Nvidia (NVDA) and Amazon (AMZN).

Launched in May 2023, the Roundhill Generative AI and Technology ETF focuses exclusively on companies involved in AI infrastructure, software and platforms. The actively managed fund holds just 43 stocks, with a team of professionals adjusting positions as they seek strong returns.

The portfolio is notably concentrated. As of March 1, 2026, 20.7% of assets were invested in four companies: Alphabet (GOOGL) at 6.92%, Nvidia at 6.43%, Amazon at 4.01% and Micron Technology (MU) at 3.33%. This top-heavy structure means performance can be disproportionately influenced by these holdings.

Those four stocks have delivered an average return of 559% from the start of 2023 through early 2026, far outpacing the S&P 500 (SPX)’s 79% climb over the same period. Other prominent positions in the ETF include Microsoft (MSFT), Advanced Micro Devices (AMD), Broadcom (AVGO), Meta Platforms (META), Palantir Technologies, SK Hynix and Samsung Electronics.

Since inception, the ETF has gained 146%, compared with 64% for the S&P 500 (SPX). The fund charges an expense ratio of 0.75%, significantly above the 0.03% expense ratio of a broad S&P 500 ETF (SPY), reflecting the higher costs of active management and concentrated exposure.

Nvidia is both a core position in the CHAT ETF and a central player in the Magnificent Seven. Recent declines in technology shares have pulled valuations down, leaving Nvidia as the second-cheapest stock in that group, trading at about 22 times forward earnings estimates, similar to Meta Platforms (META).

This valuation comes despite a strong fundamental backdrop. Nvidia recently reported a 65% increase in full-year revenue to $215 billion, a record level, driven by ongoing demand for its graphics processing units that power major AI tasks such as model training and inference.

The company is preparing to ramp mass production of its Vera Rubin semiconductor platform for data centers later this year. The platform is expected to significantly reduce the cost of training and serving AI models, and Nvidia’s chief financial officer has said every major developer is likely to deploy these chips.

Nvidia’s products also support other CHAT ETF holdings. Micron’s (MU) high-bandwidth memory is embedded in Nvidia’s AI chips, helping manage data flow to unlock higher processing speeds, and AI-driven demand is expected to accelerate Micron’s revenue growth.

Amazon appears in multiple storylines: as a top holding in the CHAT ETF, a member of the Magnificent Seven and one of three retail stocks highlighted as attractive this month. The company combines a large e-commerce business with its Amazon Web Services cloud unit.

In retail operations, Amazon is using AI and robotics to improve efficiency after years of logistics investment. It is now the largest operator and manufacturer of robots in the world and deploys more than 1 million robots in its warehouses, coordinated by its DeepFleet AI model.

This automation has contributed to operating leverage. In the latest reported fourth quarter, North American operating income rose 24% on a 10% increase in sales. At the same time, AWS revenue growth accelerated to 24% last quarter, with the company increasing capital expenditure plans for 2026 to expand data center capacity.

More broadly, advances in AI hardware efficiency are seen as a tailwind for major cloud providers such as Amazon and Alphabet (GOOGL), as lower computing costs can improve the profitability of leasing AI capacity to developers.