GraniteShares YieldBOOST NVDA ETF: A High-Yield Play on AI-Centric Growth

A line chart illustrating NVIDIA's market capitalization surge to $4.5 trillion in late 2025, juxtaposed with a bar graph showing the $500 billion Stargate project and 70% AI data center spending attributed to NVIDIA. The image highlights the intersection of AI infrastructure growth and high-yield investment strategies.

The AI revolution is reshaping global markets, and few companies embody this transformation as profoundly as NVIDIA. With its market capitalization surpassing $4.5 trillion in late September 2025, NVIDIA has become a linchpin of the AI infrastructure boom, driven by large-scale contracts and strategic partnerships such as the $500 billion "Stargate" project with OpenAI. For investors seeking to capitalize on this momentum while generating income, the GraniteShares YieldBOOST NVYY ETF offers a compelling, albeit complex, vehicle.

Structure and Performance of NVYY

NVYY is designed to generate yield through options strategies tied to the 2x Long NVDA Daily ETF, a leveraged product that amplifies exposure to NVIDIA's stock performance. By selling put options on these leveraged ETFs, NVYY captures premium income while maintaining a non-leveraged structure itself. This approach leverages the high volatility of leveraged derivatives to enhance returns, a strategy that has paid off handsomely in 2025. As of June 30, 2025, the fund delivered a 14.47% total return since inception and a 12.28% one-month market price return, outpacing many traditional equity benchmarks.

The fund's weekly distribution model-most recently paying $0.47327 per share on September 5, 2025-adds to its appeal for income-focused investors. However, its 1.07% total expense ratio reflects the complexity of managing options strategies, a cost that must be weighed against the potential for outsized returns in a high-growth sector.

NVIDIA's Dominance in AI Infrastructure

NVYY's alignment with AI-driven momentum is rooted in NVIDIA's unparalleled market position. The company's hardware now accounts for 70% of spending on a new AI data center, a testament to its leadership in chips and systems critical for generative AI. This dominance is further reinforced by NVIDIA's Q2 2026 earnings, which reported a 56% year-over-year revenue surge to $46.74 billion, fueled by surging demand for data center solutions, as reported by Data Center Frontier.

Looking ahead, NVIDIA envisions a $3–$4 trillion AI infrastructure market over the next five years, driven by its Blackwell and Rubin architectures. Analysts have raised 2026 revenue estimates, citing strategic partnerships and core customer demand as key growth drivers. Even amid geopolitical headwinds, such as export restrictions to China, NVIDIA's roadmap suggests resilience, with potential revenue gains of $2–$5 billion if trade barriers ease.

Historical data from 2022 to the present reveals that NVIDIA's stock has a 64% win rate 30 days post-earnings beat, though cumulative alpha remains modest at 1.6% by day 30. Notably, the worst stretch (days 11–12) showed a significantly negative drift, underscoring the importance of timing and volatility management in such strategies.

Strategic Alignment and Risks

NVYY's strategy of selling put options on leveraged NVDA ETFs is well-suited to a market where volatility and growth coexist. By capturing premiums from options linked to 2x leveraged products, the ETF benefits from both NVIDIA's upward trajectory and the inherent volatility of leveraged derivatives. This dual exposure could amplify returns in a sector where AI adoption is accelerating.

However, the fund's performance is not without risks. Options strategies are sensitive to market timing and volatility shifts, and the leveraged ETFs it targets can exhibit decay in sideways or declining markets. Additionally, NVYY's focus on a single stock-albeit a dominant one-concentrates risk, making diversification a critical consideration for investors.

Conclusion

For investors comfortable with complexity and volatility, NVYY represents a high-conviction bet on NVIDIA's-and by extension, AI's-dominance in the global economy. Its yield generation model, coupled with NVIDIA's strategic positioning in AI infrastructure, offers a unique way to participate in a sector poised for decades of growth. Yet, as with any leveraged or options-based strategy, due diligence is essential. The AI revolution is here, but navigating its financial instruments requires both insight and caution.