---
title: "Prediction: The Roundhill Generative AI & Technology ETF Will Soar Over the Next 8 Years. Here's the No. 1 Reason Why."
description: "The Roundhill Generative AI & Technology ETF is predicted to thrive over the next eight years due to the rapid growth of artificial intelligence spending, expected to reach $4.8 trillion by 2033. This"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/260670825.md"
published_at: "2025-10-10T16:36:03.000Z"
---

# Prediction: The Roundhill Generative AI & Technology ETF Will Soar Over the Next 8 Years. Here's the No. 1 Reason Why.

> The Roundhill Generative AI & Technology ETF is predicted to thrive over the next eight years due to the rapid growth of artificial intelligence spending, expected to reach $4.8 trillion by 2033. This ETF offers a diversified investment in AI, with major holdings in companies like Nvidia, Microsoft, and Oracle. While it has a higher expense ratio of 0.75%, its focus on generative AI, which is growing faster than the overall AI market, may provide significant returns for investors.

The artificial intelligence revolution is well underway. With so many companies vying for a slice of the pie, picking out the most likely potential winners in this emerging technological sphere can be a challenge. But there's an easier way to invest in the trend -- purchasing an ETF. And among those that focus on this part of the market, the **Roundhill Generative AI & Technology ETF** (CHAT -3.03%) could be your best bet for one obvious reason.

## Artificial intelligence spending will grow more than investors may realize

Adoption of AI software products is exploding across nearly every sector, and AI infrastructure companies are racing to build enough capacity to meet demand.

But here's the thing: This industry is still in its early days. The AI market globally was valued at just $189 billion in 2023, but according to a report from United Nations Trade and Development, by 2033, it will be worth an astounding $4.8 trillion. That's an annual growth rate of more than 30%.

Image source: Getty Images.

Investing in the Roundhill Generative AI & Technology ETF is a great way to make sure your portfolio benefits from the ongoing rise in spending on AI technologies. Most of its 39 holdings are directly exposed to that rising demand. **Nvidia**, for example -- the world's leading supplier of AI GPUs -- is the fund's biggest holding, with a portfolio weight of 8.1%. **Microsoft** and **Oracle** -- both of which operate AI data centers -- are also among the ETF's top five holdings.

This ETF gives investors a more diversified AI position than they'd get by buying a smaller, customized basket of AI stocks. That offers the upside of reduced risk from any specific holding's potential poor performance, but the downside is, it dilutes the gains of its biggest winners. And the expense ratio of 0.75% isn't particularly low. But generative AI -- the category of AI this ETF focuses most on -- is growing faster than the AI industry overall. Diversifying your bets across businesses with higher growth potential could offset the impacts of its higher expense ratio and broader market exposure.

### Related Stocks

- [ORCL.US - Oracle](https://longbridge.com/en/quote/ORCL.US.md)
- [MSFT.US - Microsoft](https://longbridge.com/en/quote/MSFT.US.md)
- [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 1 Analyst Thinks This Stock is The "Godfather of AI" | 1 Analyst Thinks This Stock is The "Godfather of AI" | [Link](https://longbridge.com/en/news/276441703.md) |
| CHAT and WTAI: Two AI ETFs Offering High Dividend Yields | The Roundhill Generative AI & Technology ETF (CHAT) and the WisdomTree Artificial Intelligence & Innovation Fund (WTAI)  | [Link](https://longbridge.com/en/news/276191632.md) |
| Why Smart Money Buys When AI Stocks Pull Back | Why Smart Money Buys When AI Stocks Pull Back | [Link](https://longbridge.com/en/news/276517144.md) |
| Infosys Unveils AI First Value Framework | Infosys Ltd :INFOSYS - INFOSYS UNVEILS AI FIRST VALUE FRAMEWORK | [Link](https://longbridge.com/en/news/276131501.md) |
| Best ETFs to Invest In, According to AI Analyst, 2/19/2026 | Investors are increasingly looking to exchange-traded funds (ETFs) for diversification and lower costs, but the vast sel | [Link](https://longbridge.com/en/news/276382976.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.