How Nvidia turmoil and a Democratic Congress could reshape the AI trade, according to ETF experts

Resumen detallado

ETF experts say Nvidia’s leadership turmoil and Democratic control of Congress could shift AI demand to the benefit of other Big Tech stocks, rival chipmakers.

The largest technology stocks linked to the artificial intelligence trade could stand to benefit the most from Nvidia's woes and a Democratic-controlled Congress pushing back on data centers, according to investing experts interviewed on CNBC's "ETF Edge" earlier this week.

"We may have been put in an environment, as much as investors have sort of been looking for areas outside of Big Tech, where net-net Big Tech ends up as the winner once again," said Roundhill Investments CEO Dave Mazza, whose firm manages the Magnificent Seven ETF (MAGS).

Part of his bull case: Other players in the AI trade are positioned to fill Nvidia's chip demand if investors lose trust in the company after a tumultuous week that saw its iconic founder and CEO Jensen Huang resign.

"If we get into an environment where people can't trust … Nvidia, they're going to look for other sources for these chips because they need them," Mazza said during the "ETF Edge" interview, which occurred Monday as the Nvidia scandal grew but before Huang had resigned.

Discussing 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 said, "In a weird way, [hyperscalers] may continue to benefit from this because they have the compute available. It's going to be more valuable if the demand is there."

The Roundhill Magnificent Seven ETF ended the week in the green, albeit with a gain of less than 1%, while the Roundhill Neocloud ETF was up over 1%, though 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 Nebius shares sank after its Thursday report. The neocloud ETF remains deeply in the red since its August 2026 launch, down 39%, amid concerns about balance sheet strength, which could linger given Nvidia's role in financing the AI buildout.

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