The biggest tech stocks tied to the artificial intelligence trade could benefit the most from Nvidia’s woes and a Democratic-controlled Congress that opposes data centers, according to investment experts interviewed on CNBC’s “ETF Edge” earlier this week.
“We may have been put in an environment, to the extent that investors were sort of looking for areas outside of big tech, where big net tech ends up as winners once again,” said Dave Mazza, CEO of Roundhill Investments, whose firm runs the Magnificent Seven ETF.MAGS).
Part of his bullish pitch: Other players in the AI sector are able to meet demand for Nvidia’s chips if investors lose confidence in the company after a tumultuous week that saw its iconic founder and CEO, Jensen Huang, resign.
“If we enter an environment where people can’t trust Nvidia, they will look for other sources for these chips because they need them,” Mazza said during the “ETF Edge” interview, which took place Monday as the Nvidia scandal was gaining momentum but before Huang’s resignation.
Discussing recent fund flow activities for the MAGS ETF, as well as the Roundhill Neocloud ETF (NCLD) — which focuses on smaller market cap cloud computing companies — Mazza said: “In a weird way, (hyperscalers) can continue to benefit because they have the compute available. It will be more valuable if the demand is there. »
The Roundhill Magnificent Seven ETF finished the week in the green, albeit with a gain of less than 1%, while the Roundhill Neocloud ETF rose more than 1%, although earnings from top holdings Coreweave and Nebius presented a mixed picture.
CoreWeave had its best day since April 2025 on Wednesday after its latest quarterly results, while shares of Nebius fell after its report on Thursday. The neocloud ETF remains deep in the red since its launch in August 2026, down 39%, due to concerns about balance sheet strength, which could persist given Nvidia’s role in funding AI development. CoreWeave shares fell further on Friday and Nvidia posted its longest losing streak since 2012 after its latest weekly losses.
Roundhill Neocloud ETF year-to-date performance in 2026.
Nvidia’s interim CEO and current CFO, Colette Kress, will have her first opportunity to reassure the market when Nvidia reports its third-quarter results next Tuesday. “Our focus remains on serving our customers, partners, developers and shareholders,” Kress said in a statement released Thursday morning when the company announced Huang’s departure.
Dan Ives, partner and managing director at Yorkville Ives, said Monday on “ETF Edge” that the market would remain optimistic about other AI chip players, like AMD and Alphabet, if Nvidia faces prolonged headwinds. Ives helped create the Dan IVES Wedbush AI Revolution ETF (IVES) at Wedbush Securities, where he served as Managing Director and Global Head of Technology Research before leaving Wedbush to start his own company earlier this year.
AMD finished this week up almost 13%, with Broadcom posting similar gains.
The tech-heavy Nasdaq index posted its best week since August as the Nvidia crisis reshuffled the AI business.
AMD performance over the past week.
Yorkville Ives on Thursday lowered his price target on Nvidia to $225 from $300 after Huang’s resignation, but maintained a buy rating on the stock, which finished the week at $162.85. per share.
“Nvidia remains the clear leader in GPU chips for the AI revolution. They are about 2-3 years ahead of their closest competitor and the trajectory of demand in the next few years is not changing because Jensen is gone,” Ives wrote in a note to investors Thursday. “The strategic roadmap is already essentially built around the next chip families and physical AI with 42,000 employees driving it. … A valuation at around 10x 28 EPS is way too cheap once Nvidia weathers this storm and emerges on the other side.”
The computing that exists could become even more indispensable amid a potential slowdown in data center construction by Congress after the Democratic Party’s Nov. 3 gains swept control of Congress, Mazza said.
Ives estimates that the “blue tidal wave” in Congress could mean that 10 percent of planned data centers won’t materialize at the low end, and 15 to 20 percent at the high end, but he added that demand still outstrips supply by four to one. “The math is even more valuable today than it was a week ago. So I could say it’s getting more bullish, stronger, stronger and stronger,” Ives said.
“The situation will change for Big Tech. It will slow them down. But there is no overbuilding, no bubble problem. And I see that as a really positive thing,” he added.
Gn bussni
