GAMR Soars as AMD & AI Chips Power Gaming Rally

• 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.

Traditional game publishers weighed on performance. Nintendo Co. (7974:TKS), maker of the Switch console and franchises including Mario and Zelda, fell 13.7% and subtracted 0.64 points from the index, according to VettaFi. Sony Group Corp. (6758:TKS), which manufactures the PlayStation console, declined 6.6% and dragged returns by 0.32 points.

The media and communications sector, which includes publishers and streaming platforms, contributed just 0.65 points despite a 0.41 weighting in the fund. Tencent Holdings, the Chinese conglomerate behind games including Honor of Kings, dropped 5.8% and subtracted 0.47 points.

The technology sector’s 28.4% return in April outpaced consumer discretionary’s 4.4% decline by more than 30 percentage points, VettaFi data showed.

The March quarterly rebalance added exposure to infrastructure plays. The fund increased Electronic Arts to a 5.0% weight and Unity Software to 2.5%, while trimming NVIDIA and Meta to maintain 10% caps.

See more: GAMR Rebalance Highlights Gaming Stock Rotation

The rebalance also swapped U.S.-listed NetEase Inc. (NTES) for Hong Kong-listed NetEase Inc. (9999:HKG), reflecting a preference for primary listings where price discovery ties more closely to home markets. The $37.5 million fund holds 20 positions with a 0.59% expense ratio.

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VettaFi LLC (“VettaFi”) is the index provider for GAMR, for which it receives an index licensing fee. However, GAMR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of GAMR.