NVIDIA's AI Dominance and the Income-Generating Potential of the NVIDIA Yield Shares Purpose ETF

In the rapidly evolving landscape of artificial intelligence (AI), NVIDIA (NVDA) has emerged as an unassailable leader, reshaping global technology infrastructure with its cutting-edge GPUs and software ecosystem. According to a report by Monexa.ai, NVIDIA's Data Center segment alone generated $30.8 billion in Q3 FY2025, marking a 112% year-over-year increase and accounting for 88% of the company's total revenueNVIDIA’s AI Ascendancy: A Record-Breaking Q3 FY2025 Fuels Global Tech Shift^[1]. This meteoric rise is driven by insatiable demand for its Hopper and Blackwell GPUs, which power AI training and inference at scale. With a projected $3–$4 trillion AI infrastructure opportunity over the next five years, as emphasized by CEO Jensen HuangNVIDIA Forecasts $3–$4 Trillion AI Market, Driving Next Wave of Infrastructure^[2], NVIDIA's dominance in high-performance computing is cementing its role as a cornerstone of the AI era.

For investors seeking to capitalize on this growth while generating income, the NVIDIA Yield Shares Purpose ETF (YNVD) offers a compelling vehicle. Launched by Purpose Investments Inc. in January 2024, YNVD is an actively managed fund designed to maximize yield from NVIDIA shares through a combination of covered call strategies and moderate leverageNVIDIA (NVDA) Yield Shares Purpose ETF | YNVD^[3]. The fund's structure allocates approximately 50% of its yield to covered calls—selling options on NVIDIA stock to generate monthly income—and an additional 25% to leverage, amplifying exposure while maintaining participation in NVIDIA's long-term growthNVIDIA (NVDA) Yield Shares Purpose ETF (NEO:YNVD) Stock^[4]. As of September 2025, YNVD has delivered a 38.85% total return in the past year, including dividendsThe Hidden Risks of High-Yield Covered Call ETFs^[5], outpacing many traditional dividend-paying equities.

NVIDIA's AI-driven revenue surge provides a robust foundation for YNVD's strategy. Data from Markets.FinancialContent.com reveals that NVIDIA's full fiscal year 2025 revenue reached $130.5 billion, a 114.2% increase compared to 2024NVIDIA’s AI Ascendancy: A Record-Breaking Q3 FY2025 Fuels Global Tech Shift^[1]. This growth is underpinned by its 75–85% market share in high-performance data center AI GPUs, driven by its CUDA and TensorRT software ecosystemNVIDIA Forecasts $3–$4 Trillion AI Market, Driving Next Wave of Infrastructure^[2]. Analysts at DataCenterFrontier project Q3 FY2026 revenue to hit $54 billion, reflecting sustained demand for Blackwell architecture and NVIDIA's expanding footprint in edge computingNVIDIA Forecasts $3–$4 Trillion AI Market, Driving Next Wave of Infrastructure^[2]. Such momentum ensures that YNVD's focus on NVIDIA remains well-aligned with a company poised to dominate AI infrastructure for years to come.

However, the fund's strategy is not without risks. The use of leverage and derivatives amplifies both gains and losses, making YNVD more volatile than a direct investment in NVIDIA sharesNVIDIA (NVDA) Yield Shares Purpose ETF | YNVD^[3]. Additionally, covered call strategies inherently cap upside potential if NVIDIA's stock price surges beyond the strike price of sold optionsYNVD ETF Analysis: Dividends, Returns NEO:YNVD — TradingView^[6]. For instance, while NVIDIA's stock has appreciated significantly in 2025, YNVD's one-month net asset value (NAV) return dipped by 5.41%, highlighting the trade-off between income generation and capital appreciationYNVD ETF Analysis: Dividends, Returns NEO:YNVD — TradingView^[6]. Investors must weigh these factors against NVIDIA's projected 34.62% earnings per share (EPS) growth over the next five yearsThe Hidden Risks of High-Yield Covered Call ETFs^[5], which suggests that direct ownership may outperform in a prolonged bull market.

Despite these risks, YNVD's tax-efficient structure and monthly dividend yield of 24.91% (TTM) make it an attractive option for income-focused investorsNVIDIA (NVDA) Yield Shares Purpose ETF (NEO:YNVD) Stock^[4]. The fund's recent payout of $0.75 per share on August 27, 2025, underscores its commitment to consistent income generationThe Hidden Risks of High-Yield Covered Call ETFs^[5]. While the expense ratio remains undisclosed, the fund's active management and derivatives usage imply higher fees than passive ETFs—a consideration for long-term investors.

In conclusion, the NVIDIA Yield Shares Purpose ETF represents a unique intersection of high-growth AI equity exposure and income generation. By leveraging NVIDIA's unparalleled position in the AI market through a covered call and leverage strategy, YNVD offers investors a dual opportunity: to benefit from NVIDIA's long-term innovation while receiving regular dividends. As the AI revolution accelerates, YNVD's structure positions it to capture both the income and growth potential of a company redefining the future of technology.