Roundhill's AI playbook expands into neocloud and photonics, broadening bet beyond DRAM suppliers.

Roundhill Investments is extending its successful AI infrastructure strategy with two new funds targeting specialized corners of the ecosystem. On Thursday, the ETF issuer introduced the Roundhill Neocloud ETF (NASDAQ:NCLD) and the Roundhill Photonics & Optics ETF (BATS:LYTE), following the blockbuster performance of its Roundhill Memory ETF (BATS:DRAM).

The launches capitalize on a rare achievement in the ETF industry: DRAM became the fastest ETF ever to surpass $25 billion in assets under management, reaching that milestone just four months after its debut. The rapid growth signals strong investor appetite for specialized, thematic exposure to AI infrastructure rather than broad technology portfolios.

NCLD targets the computing backbone supporting AI workloads, focusing on GPU-as-a-Service providers, AI-focused cloud platforms, and data center operators. The fund is heavily concentrated, with Nebius Group (NASDAQ:NBIS) representing 30.8% of assets and CoreWeave Inc (NASDAQ:CRWV) accounting for 27.3%. Other significant holdings include IREN Ltd (NASDAQ:IREN), Terawulf Inc (NASDAQ:WULF), Applied Digital Corp (NASDAQ:APLD), and Core Scientific Inc (NASDAQ:CORZ), reflecting the growing reliance on alternative cloud providers as AI computing demand accelerates.

LYTE addresses another critical layer: photonics and optical networking. As AI clusters expand, the shift from traditional copper connections to optical interconnects—which transmit data faster and more efficiently—is becoming essential. Top holdings in LYTE include Lumentum Holdings Inc (NASDAQ:LITE), Coherent Corp (NYSE:COHR), Ciena Corp (NYSE:CIEN), Fabrinet (NYSE:FN), and Applied Optoelectronics Inc (NASDAQ:AAOI), alongside several Chinese optical networking companies.

The two launches broaden Roundhill's footprint across multiple layers of AI infrastructure. While DRAM concentrated on memory-chip manufacturers benefiting from AI demand, NCLD shifts focus to compute capacity providers, and LYTE targets networking technologies that move data between GPUs and servers.

Roundhill CEO Dave Mazza said, "DRAM proved that investors want precise exposure to the AI infrastructure trade, not another broad tech fund. NCLD and LYTE extend that approach to two critical layers of the AI buildout: the neoclouds providing compute and the photonics companies moving data at the speed of light."

The launches reflect a broader industry trend in which ETF issuers increasingly segment the AI value chain into investable themes. With DRAM's rapid asset growth as validation, Roundhill is positioning itself to capture investor demand for increasingly specialized slices of the AI infrastructure ecosystem as the buildout continues.