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."