Artificial intelligence is often discussed through the companies designing the chips at the center of the technology. But the growth of AI requires much more than GPUs. Behind every advanced AI processor is a global network of companies supplying memory, manufacturing equipment, advanced packaging, connectivity, power, cooling, raw materials, and data-center infrastructure.
The PurePlay NVIDIA Ecosystem Picks & Shovels Index ETF (NASDAQ: NVPS) is designed to provide exposure to this broader ecosystem by tracking the companies that support the NVIDIA supply chain.
Rather than focusing on a single company or one segment of the semiconductor industry, NVPS is built around the physical infrastructure required to manufacture, connect, power, cool, and deploy advanced AI computing systems.
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The NVIDIA Ecosystem Extends Across the Hardware Supply Chain
NVIDIA's processors sit at the center of today's AI infrastructure buildout, but the production and deployment of those processors involves dozens of specialized industries.
NVPS provides exposure across several areas of the supply chain, including:
Memory: Advanced AI systems require increasingly sophisticated memory technologies, including High-Bandwidth Memory (HBM), to move and process the enormous amounts of data required by modern AI workloads.
Semiconductor Equipment: The most advanced chips require highly specialized manufacturing equipment. Companies involved in lithography, deposition, etch, inspection, and other manufacturing processes provide the tools necessary to produce increasingly complex semiconductors.
Advanced Packaging: As chip designs become more sophisticated, packaging has become an increasingly important part of semiconductor manufacturing. Advanced packaging technologies allow multiple components to work together in increasingly dense configurations.
Connectivity: AI systems generate enormous amounts of data that must move between processors, servers, and data centers. Networking and optical technologies are therefore an important part of the infrastructure supporting AI computing.
Data Center Infrastructure: AI workloads require significant physical infrastructure, including servers, data centers, power systems, and related equipment to deploy computing capacity at scale.
Thermal & Power Solutions: Higher computing density creates greater requirements for electricity and cooling. Companies providing power management, thermal management, and related infrastructure support the physical deployment of AI systems.
Raw Materials: Semiconductor and electronics manufacturing also depends on a broad network of specialized materials and components used throughout the production process.
A Different Way to Access the AI Hardware Ecosystem
The AI infrastructure opportunity extends beyond the companies most visible to investors.
A new generation of computing capacity requires semiconductor manufacturing, memory production, packaging, networking, power, cooling, and data-center infrastructure to develop alongside the processors themselves.
That creates a supply chain with multiple layers and specialized companies participating at different points in the buildout.
NVPS is designed around that broader ecosystem. The fund seeks to identify companies connected to the NVIDIA supply chain across these different areas rather than concentrating exposure solely in the companies designing AI processors.
Following the Picks and Shovels Behind AI
The continued expansion of AI computing requires a significant physical buildout around the technology. More computing capacity means more chips, more memory, more manufacturing equipment, more networking, more power, more cooling, and more data-center infrastructure.
The PurePlay NVIDIA Ecosystem Picks & Shovels Index ETF (NASDAQ: NVPS) provides investors with a single-ticker approach to gaining exposure to this global network of companies supporting the NVIDIA ecosystem.
As AI computing continues to evolve, the companies supplying the hardware, tools, components, and infrastructure behind that technology remain an important part of the broader AI ecosystem.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please visit the website at www.pureplayetfs.com. Read the prospectus or summary prospectus carefully before investing.
The Fund is distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor of the Fund. Foreside Fund Services, LLC is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives.
New/Smaller Fund Risk. A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.
Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.
NVIDIA Dependence Risk. Because the Index is designed to provide exposure to companies that have a material commercial relationship with NVIDIA, the Index, and therefore the Fund, is highly sensitive to NVIDIA-specific developments. Actual or perceived adverse events at NVIDIA, including financial distress, demand declines, supply or regulatory disruptions, litigation, reputational harm, strategic shifts, or insolvency, could impair the results and valuations of Index constituents that rely on NVIDIA as a key customer, supplier, or technology partner, leading to material declines and heightened volatility in the Fund.