The biggest tech stocks linked to artificial intelligence trading could benefit the most from Nvidia’s woes and the Democrat-controlled Congress pushing back on data centers, according to investment experts interviewed on CNBC’s “ETF Edge” earlier this week.
“We may have been put in an environment, as investors have been looking for areas outside of Big Tech, where the Big Tech net is the winner again,” said Roundhill Investments CEO Dave Mazza, who manages the Magnificent Seven ETF (MAGS).
Part of the bull case: Other players in the AI trade are positioned to fill Nvidia’s chip demand if investors lose confidence in the company after a turbulent week that saw founder and CEO Jensen Huang resign.
“If we get into an environment where people don’t trust … Nvidia, they’re going to look for another source for the chip because they need it,” Mazza said during the “ETF Edge” interview, which took place Monday as the Nvidia scandal grew but before Huang resigned.
Discuss recent fund flow activity for the MAGS ETF, as well as for the Roundhill Neocloud ETF (NCLD) — which focuses on smaller market cap, specialized cloud computing companies — Mazza says, “In a strange way, [hyperscalers] can continue to benefit from this because they have computing available. It will be more expensive if the demand is there.”
Roundhill Magnificent Seven ETF ended the week in the green, although with a gain of less than 1%, while Roundhill Neocloud ETF rose over 1%, although the earnings of the 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 Nebius shares fell after Thursday’s report. The Neocloud ETF has remained deeply in the red since its launch in August 2026, down 39%, amid concerns about its balance sheet strength, which could remain due to Nvidia’s role in funding AI development. CoreWeave shares fell again on Friday, and Nvidia posted its longest streak since 2012 after its latest weekly losses.
Roundhill Neocloud ETF annual financial report for 2020.
Nvidia’s interim CEO and current chief financial officer Colette Kress will have her first chance to reassure the market when Nvidia reports its third-quarter earnings on Tuesday. “Our focus remains on serving our customers, partners, developers and shareholders,” Kress said in a statement issued Thursday morning when the company announced Huang’s departure.
Yorkville Ives partner and senior director Dan Ives said on “ETF Edge” on Monday that the market will remain optimistic about other AI chip players, such as AMD and Alphabet, if Nvidia faces headwinds. Ives helped create the Dan IVES Wedbush AI Revolution ETFIVES) while at Wedbush Securities, where he served as managing director and head of global technology research before leaving Wedbush to form his own company earlier this year.
AMD ended the week trading up nearly 13%, with Broadcom posting similar gains.
The tech-heavy Nasdaq posted its best week since August as Nvidia’s slump reshuffles AI trading.
AMD’s performance over the past week.
Yorkville Ives lowered his price target on Nvidia to $225 from $300 on Thursday after Huang stepped down, but maintained a buy rating on the stock, which ended 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 competitors and the demand trajectory in the next few years has not changed since Jensen is gone,” wrote Ives in a note to investors on Friday. “The strategic roadmap has been built around the next few chip families and physical AI with 42k employees driving it. … Valuation at roughly 10x 28 EPS is too cheap if Nvidia weathers this storm and emerges on the other side.”
Existing computing can become more indispensable against the background of a potential slowdown to the data-center buildout by Congress after the Democratic Party results November 3 swept the control of Congress, said Mazza.
Ives estimated that a “blue tide” in Congress could mean 10% of planned data centers will not materialize in the end, and 15%-20% on top, but he added that demand still outstrips supply four to one. “In computing it’s just more valuable in capacity today than it was last week. So I can argue it’s just stronger, stronger, stronger,” Ives said.
“The game will change for Big Tech. It will slow down. But there is no overbuild, no bubble concerns. And I see that as a true positive thing,” he added.