Why The Roundhill Generative AI and Technology ETF Trading Under $70 Could Be Your 2026 Play

As the calendar approaches a fresh year, portfolio adjustments are on many investors’ minds. The artificial intelligence sector has been a dominant force in market performance throughout 2025, and momentum suggests this trend will accelerate in 2026. For those seeking exposure to premium AI companies without individual stock picking, the Roundhill Generative AI and Technology ETF (NYSEMKT: CHAT) presents a compelling opportunity at under $70 per share.

The AI Performance Surge and What It Means

The numbers speak for themselves. Investors who sidestepped the artificial intelligence revolution during 2025 faced significant opportunity costs. Powerhouse names like Nvidia, Broadcom, and Alphabet generated returns that far exceeded broad market benchmarks, with the S&P 500 climbing 16% while these AI leaders delivered median gains of 37%. This disparity isn’t accidental—it reflects the outsized influence AI adoption has on equity valuations.

The question isn’t whether artificial intelligence will remain central to 2026’s market narrative, but rather how to position for continued gains without the complexity of individual security selection.

Inside The 50-Stock AI Portfolio

The Roundhill Generative AI and Technology ETF takes a concentrated approach, holding just 50 companies focused on the infrastructure, platforms, and software enabling the AI revolution. This limitation creates both opportunity and risk. On one hand, investors capture exposure to sector leaders. On the other, portfolio concentration means the fund carries higher volatility than diversified index alternatives.

The ETF’s architecture reveals its tilt toward mega-cap dominance: Alphabet, Nvidia, Microsoft, Meta Platforms, and Broadcom collectively represent 25.9% of holdings. These five stocks have delivered spectacular absolute returns but deserve context—other portfolio constituents have proven equally compelling for differentiated gains.

Standout Holdings Beyond The Top Five

Advanced Micro Devices (NASDAQ: AMD) represents a particularly interesting positioning. The company’s upcoming 2026 data center chip lineup promises significant capability upgrades, potentially narrowing its competitive gap with Nvidia in this lucrative segment.

Palantir Technologies (NASDAQ: PLTR) operates dual platforms—Gotham and Foundry—designed to help enterprises and government bodies maximize data value through artificial intelligence applications. This unique positioning spans both commercial and public sectors.

CoreWeave (NASDAQ: CRWV) supplies mission-critical AI infrastructure via cloud delivery models. As businesses rent computing capacity to develop AI applications, CoreWeave captures the growing demand for specialized hardware resources.

Micron Technology (NASDAQ: MU) functions as a critical supply chain component, providing high-bandwidth memory solutions that power data center operations. Leading chipmakers including Nvidia and AMD depend on Micron’s advanced HBM3E memory for their most sophisticated AI processors.

Snowflake (NYSE: SNOW) operates as a cloud infrastructure provider offering expanding AI deployment and data management capabilities. The platform enables enterprises to aggregate data sources and operationalize artificial intelligence solutions at scale.

These five secondary holdings have demonstrated remarkable appreciation—four doubled in value during 2025—illustrating that superior returns don’t require concentration solely in mega-cap holdings.

Performance Metrics and Market Context

The Roundhill ETF surged 53% in 2025, tripling the S&P 500’s performance. This trajectory reflects the concentrated bet on artificial intelligence leadership but warrants important caveats. The fund’s establishment date of 2023 means limited historical perspective through market downturns or recessionary conditions.

Expense considerations matter too. At 0.75% annually, a $10,000 investment carries roughly $75 in yearly fees—substantially higher than passive alternatives from managers like Vanguard charging $3. During periods of robust returns, these fees fade into insignificance, but extended underperformance would magnify their impact on net performance.

Assessing The Sustainability Question

Skeptics might question whether a 50%+ annual return remains achievable. However, Nvidia’s leadership forecasts AI infrastructure spending reaching $4 trillion between now and 2030, suggesting the sector remains in early-stage acceleration. This multi-year runway substantially increases the probability that the Roundhill fund continues outpacing conventional benchmarks through 2026 and beyond.

The concentration model presents trade-offs. Investors should limit this position to portion-controlled allocations within broader, diversified portfolio structures. Treated as a satellite holding rather than core allocation, the sub-$70 entry point offers compelling upside exposure to the artificial intelligence ecosystem without requiring expertise in individual security selection.

For portfolios tilted toward growth orientation, the Roundhill offering at current pricing deserves serious consideration heading into the new year.