The Amplify Video Game Leaders ETF (GAMR) posted a 10.23% return in April as the gaming exchange traded fund captured a rally in AI-driven chip stocks and digital platforms that power the industry.
Key Takeaways:
- GAMR gained 10.23% in April as AMD surged 68.64% and contributed 7.23 points to returns.
- Technology holdings added 10.39% while consumer discretionary subtracted 0.80%.
- Nintendo and Sony declined while infrastructure plays NVIDIA and Unity rallied.
The performance reflects a shift toward gaming infrastructure over content, with the technology sector contributing 10.39% to the index’s return while consumer discretionary holdings subtracted 0.80%, according to VettaFi index data for April.
Advanced Micro Devices Inc. (AMD), which supplies processors for gaming consoles and PCs, surged 74.3% and contributed 7.23 percentage points to the fund’s April return, per VettaFi. The chipmaker announced a multi-year collaboration with the French government on April 16 to accelerate local AI innovation and supercomputing, according to Motley Fool. AMD closed the month at $360.54.
Other chip stocks also rallied. Nvidia Corp. (NVDA), a graphics processing unit maker, gained 13.6% and added 1.38 points to the index, VettaFi data showed.
Meanwhile, Microsoft Corp. (MSFT), which owns Xbox and publishes games including Call of Duty, climbed 10.4% and contributed one point. The company reported fiscal third quarter earnings in April with EPS of $4.27 beating the $4.07 estimate. Cloud and AI revenue reached a $37 billion annual run rate, according to data from CNBC.
Meta Platforms Inc. (META), which operates virtual reality gaming through its Quest headsets, rose 5.6% and added 0.68 points. The company reported Q1 revenue of $56.31 billion on April 29, jumping 33.1% year-over-year and exceeding the $51.3 billion consensus, per MarketBeat.
Mobile advertising platforms also delivered gains. AppLovin Corp. (APP), a mobile app monetization platform, rallied 15.1% and contributed 0.70 points, according to VettaFi data. Analyst upgrades from Macquarie and Argus cited a “multi-year growth opportunity” in AI-driven mobile advertising, per Motley Fool.
Unity Software Inc. (U), which provides game development tools and engines, jumped 20.3% and added 0.57 points to returns. Electronic Arts Inc. (EA), publisher of franchises including FIFA and Madden, slipped 0.6% but had minimal impact with a 0.03-point drag.
