Nvidia Turmoil and a Democratic Congress Could Reshape the AI Trade

Highlights

Market experts interviewed on CNBC’s “ETF Edge” argued that Nvidia’s difficulties and potential limits on data-center construction could redirect attention toward other AI chipmakers and companies with computing capacity already in place. Roundhill Investments CEO Dave Mazza suggested that large technology companies may benefit if customers seek alternatives to Nvidia while still needing chips and computing resources. Dan Ives said AMD and Alphabet could attract investor interest if Nvidia faces extended pressure. The outlook is not uniformly positive: Neocloud funds and individual companies have faced losses and balance-sheet concerns. Despite possible construction delays, Ives said demand for compute still exceeds supply four to one.

Sentiment Analysis

• Overall sentiment: Mixed, with a cautiously bullish tilt. The article describes a turbulent period for Nvidia, including its founder and CEO Jensen Huang’s departure, a prolonged losing streak, and a reduced price target from Yorkville Ives. Those developments contribute to uncertainty about the company and the broader AI trade.
• At the same time, the experts cited see potential beneficiaries among other chipmakers and large technology companies. AMD’s weekly gain, Alphabet’s place among possible alternatives, and the possibility that existing compute capacity becomes more valuable provide a constructive counterpoint.
• The neocloud outlook is more cautious. The relevant ETF remained sharply down since its launch, while CoreWeave and Nebius produced divergent results and concerns remained about balance-sheet strength and financing.
• Political developments also create uncertainty: a Democratic-controlled Congress could slow data-center construction. Ives nevertheless argued that demand continues to exceed supply, framing a slower buildout as manageable rather than evidence of a bubble.

Article Text

Investing experts interviewed on CNBC’s “ETF Edge” discussed how Nvidia’s difficulties and a possible slowdown in data-center construction could change the distribution of gains across the artificial intelligence trade. Their view was that the largest technology companies and other firms with access to computing resources could benefit if customers seek alternatives to Nvidia while continuing to invest in AI infrastructure. The discussion took place during a volatile period for the chipmaker and before Jensen Huang’s resignation was announced.

Dave Mazza, CEO of Roundhill Investments, said investors had increasingly looked beyond Big Tech, but the latest developments could once again favor the largest technology companies. One reason, he argued, is that other AI companies may be positioned to meet chip demand if customers lose confidence in Nvidia. Mazza’s firm manages the Magnificent Seven ETF (MAGS), which tracks a group of major technology companies. He also discussed the Roundhill Neocloud ETF (NCLD), focused on smaller-market-capitalization companies specializing in cloud computing.

Mazza said hyperscalers could benefit because they already have computing capacity available. If demand remains strong, that capacity could become more valuable. His point was not that Nvidia’s problems automatically resolve the challenges facing other AI businesses, but that a continuing need for chips and computing may shift where investors see strategic value. The availability of existing infrastructure could matter more if new capacity becomes harder or slower to build.

Trading results during the week offered a mixed picture. The Roundhill Magnificent Seven ETF ended in positive territory, gaining less than 1%, while the Roundhill Neocloud ETF rose over 1%. However, the neocloud fund remained deeply negative since its August 2026 launch, down 39%. Its largest holdings also had contrasting results: CoreWeave recorded its best day since April 2025 on Wednesday after reporting its latest quarterly results, while Nebius shares fell after its Thursday report. Concerns about balance-sheet strength remained, particularly given Nvidia’s role in financing the AI buildout.

Other market movements underscored the turbulence. CoreWeave shares fell again on Friday, and Nvidia recorded its longest losing streak since 2012 after its latest weekly losses. Nvidia’s interim CEO and current chief financial officer, Colette Kress, was due to address investors when the company reported its third-quarter earnings the following Tuesday. In a statement issued on Thursday morning, when the company announced Huang’s exit, Kress said, “Our focus remains on serving our customers, partners, developers and shareholders.”

Dan Ives, a partner and senior managing director at Yorkville Ives, said investors could remain optimistic about other AI chip companies, including AMD and Alphabet, if Nvidia faced prolonged headwinds. Ives helped create the Dan IVES Wedbush AI Revolution ETF (IVES) while at Wedbush Securities, where he had served as managing director and global head of technology research. He left Wedbush to establish his own firm earlier in the year. AMD finished the week up close to 13%, while Broadcom posted similar gains. The technology-heavy Nasdaq also recorded its best week since August as Nvidia’s decline reshuffled the AI trade.

Yorkville Ives cut its Nvidia price target to $225 from $300 on Thursday after Huang’s resignation, while maintaining a buy rating. Nvidia finished the week at $162.85 per share. Ives continued to describe Nvidia as the clear leader in GPU chips for the AI Revolution, estimating that it was roughly 2-3 years ahead of its nearest competitor. He argued that the demand outlook for the next few years had not changed because of Huang’s departure. In his note, Ives also pointed to the company’s chip roadmap and workforce, and said its valuation at roughly 10x 28 EPS was too low if the company could weather the period of uncertainty.

Political change adds another factor to the outlook. Mazza said a Democratic-controlled Congress could slow the data-center buildout following Democratic Party gains on Nov. 3. Ives estimated that the “blue tidal wave” could prevent 10% of planned data centers from being built at the low end, or 15%-20% at the high end. However, he said demand still outstripped supply four to one. In his assessment, this imbalance could make currently available computing capacity more valuable, even if construction slows.

Ives said the political environment could change the pace of expansion for Big Tech, but he did not view the possibility of a slowdown as evidence of overbuilding or an AI bubble. Instead, he characterized the constraint as potentially positive because it could temper development while leaving demand greater than supply. The central tension in the experts’ outlook is that slower infrastructure growth may coexist with rising value for compute that is already available. The article therefore presents a mixed market picture: Nvidia faces company-specific uncertainty, alternative firms may attract attention, and political limits could affect investment timing without eliminating the underlying demand for AI computing.

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