The S&P 500 has been on a tear in 2024, posting a remarkable 28% gain with a month still to go. This performance is more than double its historical average annual return, driven in large part by AI-focused giants like Nvidia, Meta Platforms, and Amazon. If you’ve missed out on these gains, there’s a simple and affordable way to catch up: the Roundhill Generative AI and Technology ETF (CHAT), a highly concentrated fund of the top-performing AI stocks. Priced at just $40 per share, this ETF is an excellent choice for investors looking to tap into the ongoing AI revolution.
A Pure Play on Artificial Intelligence
According to Goldman Sachs, artificial intelligence could add $7 trillion to the global economy by 2032. The Roundhill Generative AI and Technology ETF focuses on companies leading this transformative wave. The fund holds a portfolio of 48 stocks, with its top five positions accounting for over 26% of the fund’s value.
Top 5 Stocks in the Roundhill ETF Portfolio:
| Stock | Portfolio Weighting |
|---|---|
| Nvidia | 7.28% |
| Microsoft | 5.85% |
| Alphabet (Class A) | 5.53% |
| Meta Platforms | 4.41% |
| Taiwan Semiconductor Manufacturing (TSMC) | 3.39% |
These companies represent the pinnacle of AI innovation, spanning hardware, software, and infrastructure solutions.
Why These Stocks Are Leading the AI Revolution
1. Nvidia: The Hardware Powerhouse
Nvidia supplies the world’s most advanced GPUs for AI applications. Its data center revenue has grown by triple-digit percentages for six consecutive quarters, driven by unprecedented demand for its cutting-edge chips. With the launch of its new Blackwell GPUs, Nvidia is set to maintain its leadership position in AI hardware.