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Nvidia, AI boom & Chip ETFs

Nvidia NVDA joined the trillion-dollar market capitalization club this morning, as its shares have surged more than 180% this year. Last week, analysts scrambled to raise their estimates for the company after its revenue guidance for the current quarter came in more than 50% ahead of street consensus.

The semiconductor giant is seeing explosive demand for its cutting-edge chips used in AI applications. Its latest and one of the most powerful processors, the H100, was described as "the world's first computer chip designed for generative AI" by CEO Jensen Huang.

This weekend, the company unveiled some more AI products and services, including the DGX GH200 AI supercomputer platform. Microsoft MSFT, Alphabet GOOG and Meta Platforms META are expected to be among the first to gain access to it.

Investors continue to look for other chip stocks that could cash in on the AI gold rush. AMD AMD is a much smaller player in the AI GPU market but has benefited from the frenzy.

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Taiwan Semiconductor TSM, which accounts for around 55% of the global foundry market, manufactures GPUs for Nvidia. ASML Holding ASML produces extreme ultraviolet lithography machines that are used by the world’s leading chip manufacturers, including Taiwan Semiconductor.

The iShares PHLX Semiconductor ETF SOXX is now the biggest chip ETF with over $9.4 billion in assets. It follows a modified market cap weighted index. Nvidia, AMD, and Broadcom AVGO are its top holdings.

The VanEck Vectors Semiconductor ETF SMH follows a market cap weighted index of 25 US-listed semiconductor companies. The SPDR S&P Semiconductor ETF XSD is an equal weighted ETF.

The Invesco PHLX Semiconductor ETF SOXQ, which made its debut in 2021, is now the cheapest product in the space.

To learn more about these stocks and ETFs, please watch the short video above.

Disclosure: Neena owns SOXX and XSD in the ETF Investor Portfolio.


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Alphabet Inc. (GOOG) : Free Stock Analysis Report

Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

ASML Holding N.V. (ASML) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report

VanEck Semiconductor ETF (SMH): ETF Research Reports

iShares Semiconductor ETF (SOXX): ETF Research Reports

SPDR S&P Semiconductor ETF (XSD): ETF Research Reports

Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports

Meta Platforms, Inc. (META) : Free Stock Analysis Report

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