J Studios/DigitalVision via Getty Images Overview These are exciting times in the market with the growth of artificial intelligence. It seems like businesses across every sector are trying to utilize AI in some capacity to increase earnings. It can be difficult to assess hundreds of companies and determine which opportunities are the highest quality. The Roundhill Generative AI & Technology ETF ( ...
J Studios/DigitalVision via Getty Images Overview These are exciting times in the market with the growth of artificial intelligence. It seems like businesses across every sector are trying to utilize AI in some capacity to increase earnings. It can be difficult to assess hundreds of companies and determine which opportunities are the highest quality. The Roundhill Generative AI & Technology ETF ( CHAT ) makes it extremely easy by providing direct exposure to many of the large-cap leaders across the technology sector. The fund is still relatively new, with an inception dating back to May of 2023. Despite the short operating history, CHAT has delivered excellent performance and demonstrated its ability to participate in the upside momentum of the technology market. Looking at the performance on a YTD basis, we can see that CHAT has significantly outperformed traditional index-tracking ETFs, such as the State Street SPDR S&P 500 ETF ( SPY ) and the Invesco QQQ Trust ( QQQ ). CHAT's outperformance during this time of uncertainty may be attributed to the slight global exposure that the fund provides, as well as the exposure to the actual builders of the AI infrastructure. CHAT tends to focus its holdings on the large-cap players across the technology sector while minimizing exposure to more speculative bets. Data by YCharts The fund also offers a higher-than-average dividend yield of 2.6%, which may be attractive for investors that prefer to collect a dividend from their holdings. While I am optimistic about the outlook of the AI sector, there are some challenges that can slow growth momentum. For instance, massive capex spending levels are causing investors to question whether or not this will lead to higher earnings. Furthermore, CHAT's concentration on the tech sector means that investors should anticipate that there's the potential for greater volatility compared to standard index-tracking ETFs. Fund Strategy According to the fund overview , CHAT has total assets und...
U.S.-listed shares of Arm Holdings jumped nearly 12% in premarket trading on Wednesday after the chip firm projected billions of dollars in annual revenue from its own new artificial intelligence data-center chip. The new chip marks a pivot for Arm, which has traditionally relied on licensing its designs to companies such as Nvidia and Qualcomm and then collecting a royalty payment based on the...
U.S.-listed shares of Arm Holdings jumped nearly 12% in premarket trading on Wednesday after the chip firm projected billions of dollars in annual revenue from its own new artificial intelligence data-center chip. The new chip marks a pivot for Arm, which has traditionally relied on licensing its designs to companies such as Nvidia and Qualcomm and then collecting a royalty payment based on the number of units sold. Unlike current chips that are designed to respond to queries as part of a chatbot, Arm's AGI CPU will be able to handle data-crunching needs of "agentic AI", a system that acts on behalf of users with minimal oversight.
KE ZHUANG/E+ via Getty Images Elevator Thesis The U.S. shale industry is experiencing a silent transition. Crescent Energy ( CRGY ) lies in the heart of this change. Crescent is an independent oil and gas company that operates producing assets in major U.S. shale basins. Basically, it is bringing together quality assets, streamlining operations and broadening its platform. However, the market cont...
KE ZHUANG/E+ via Getty Images Elevator Thesis The U.S. shale industry is experiencing a silent transition. Crescent Energy ( CRGY ) lies in the heart of this change. Crescent is an independent oil and gas company that operates producing assets in major U.S. shale basins. Basically, it is bringing together quality assets, streamlining operations and broadening its platform. However, the market continues to underestimate what the company has established. Indeed, the previous year was not typical. Crescent had a superb Q4, which showed that its strategy is working. It continued to grow steadily in production and in cash flow. More importantly, it's not necessarily about volume. The company is making acquisitions a repeatable platform, which can generate long-term value. Moreover, it mostly carries liquids-intensive business, which means that increased oil prices are immediately converted into larger margins and cash flows. Meanwhile, the fact that the company is entirely U.S.-based insulates it against foreign operational risk. Naturally, there are risks, but the overall story is simple. Crescent is performing and developing value that the market does not yet appreciate. The opportunity is real and based on fundamentals as opposed to speculation. All in all, I would rate CRGY as a buy at current levels. Geopolitical Oil Market Context World attention has been attracted to tensions in the Middle East. Nevertheless, to U.S. producers, oil prices are the central effect as opposed to direct operational risk. Fears surrounding the Strait of Hormuz have placed a premium on crude. Consequently, the world benchmark, Brent crude, and the primary U.S. benchmark, West Texas Intermediate, are trading at higher levels. Concisely, markets are putting a premium on uncertainty, and not a complete supply shock. Well, this is important to Crescent. The company is completely working within the U.S. and thus it is not directly exposed to geopolitical conflict. Meanwhile, its liquids-heavy...
JHVEPhoto/iStock Editorial via Getty Images Alphabet ( GOOG ) ( GOOGL ) shares slid on Tuesday to their lowest close since November, leaving the stock on the brink of entering a bear market after a sharp retreat from recent highs. The Google parent fell more than 3% to around $290, marking its steepest single-day decline since June. The drop leaves the stock roughly 17% below its February peak nea...
JHVEPhoto/iStock Editorial via Getty Images Alphabet ( GOOG ) ( GOOGL ) shares slid on Tuesday to their lowest close since November, leaving the stock on the brink of entering a bear market after a sharp retreat from recent highs. The Google parent fell more than 3% to around $290, marking its steepest single-day decline since June. The drop leaves the stock roughly 17% below its February peak near $350, putting it within striking distance of the 20% threshold typically used to define a bear market. The selloff comes amid broader weakness in U.S. equities, as rising bond yields and persistent geopolitical tensions weigh on investor sentiment. Rate-sensitive technology stocks have come under renewed pressure, with investors rotating away from high-growth names. Alphabet ( GOOG ) ( GOOGL ) has also lagged some of its mega-cap peers in recent sessions, as concerns build around the cost of scaling artificial intelligence infrastructure and the potential impact on margins. Ongoing regulatory scrutiny has added another layer of uncertainty for investors. Volumes were elevated compared with recent averages, pointing to active repositioning as the stock approaches key technical levels. A further leg down would tip the shares into bear market territory, underscoring the shift in sentiment around one of Wall Street’s most closely watched technology companies. Here is a chart posted by Mike Zaccardi: Mike Zaccardi More on Alphabet Alphabet: Inside Google Cloud's New Growth Pillars Alphabet Q4: A Fairly Valued Tech Titan To Buy Now Alphabet: Apple AI Deal Is The Biggest Blind Spot Google DeepMind teams up with Agile Robots for AI robotics push U.S. bans new foreign-made routers over security risks
JHVEPhoto/iStock Editorial via Getty Images Alphabet ( GOOG ) ( GOOGL ) shares slid on Tuesday to their lowest close since November, leaving the stock on the brink of entering a bear market after a sharp retreat from recent highs. The Google parent fell more than 3% to around $290, marking its steepest single-day decline since June. The drop leaves the stock roughly 17% below its February peak nea...
JHVEPhoto/iStock Editorial via Getty Images Alphabet ( GOOG ) ( GOOGL ) shares slid on Tuesday to their lowest close since November, leaving the stock on the brink of entering a bear market after a sharp retreat from recent highs. The Google parent fell more than 3% to around $290, marking its steepest single-day decline since June. The drop leaves the stock roughly 17% below its February peak near $350, putting it within striking distance of the 20% threshold typically used to define a bear market. The selloff comes amid broader weakness in U.S. equities, as rising bond yields and persistent geopolitical tensions weigh on investor sentiment. Rate-sensitive technology stocks have come under renewed pressure, with investors rotating away from high-growth names. Alphabet ( GOOG ) ( GOOGL ) has also lagged some of its mega-cap peers in recent sessions, as concerns build around the cost of scaling artificial intelligence infrastructure and the potential impact on margins. Ongoing regulatory scrutiny has added another layer of uncertainty for investors. Volumes were elevated compared with recent averages, pointing to active repositioning as the stock approaches key technical levels. A further leg down would tip the shares into bear market territory, underscoring the shift in sentiment around one of Wall Street’s most closely watched technology companies. Here is a chart posted by Mike Zaccardi: Mike Zaccardi More on Alphabet Alphabet: Inside Google Cloud's New Growth Pillars Alphabet Q4: A Fairly Valued Tech Titan To Buy Now Alphabet: Apple AI Deal Is The Biggest Blind Spot Google DeepMind teams up with Agile Robots for AI robotics push U.S. bans new foreign-made routers over security risks