ETFs That Allow You To Invest In Nvidia's AI Wave, Strategy to Bypass US - China Sanctions

Among the S&P 500 mega-cap stocks, NVIDIA Corp NVDA shares gained the most YTD (+86.06%).

Nvidia shares also gained the maximum in the last week (+6.46%), the month (31.02%), the quarter (+69.05%), and the six months (+105.04%), reaching a market cap of $672 billion.

Nvidia won a host of analyst convictions, especially since the GTC conference, which helped it showcase accelerating demand for its solutions, driven by the demand wave of generative AI and increasing criticality of power efficiency in the data center. 

Nvidia CEO Jensen Huang referred to the recent acceleration of artificial intelligence as the "iPhone moment for AI" during the GTC event on Tuesday.

Nvidia also revealed deals with big tech companies. "The age of AI demands cloud data center infrastructures to support extraordinary computing requirements," Huang said during his presentation.

Huang expressed a "great relationship" with "basically every car company on the planet." He expected greater demand from hyperscalers since the last earnings report.

Evercore wrote, lauded the event for serving as a confidence boost in Nvidia's positioning as "the arm's dealer and enabler of AI adoption across every industry," adding that generative AI is marking an inflection point for AI and Nvidia "remains king" in the AI space.

"We expect NVDA's valuation to increase based on near-term data center strength, receding gaming headwinds, and greater traction in inference and software markets," Needham analyst Rajvindra Gill wrote on Thursday.

This week, Nvidia said it has similarly developed a China-export version of its H100 chip, making it eligible for export to China. The H800 mainly reduced the chip-to-chip data transfer rate to about half the speed of the flagship H100.

The cloud computing units of Chinese technology firms like Alibaba Group Holding Ltd BABA, Baidu Inc BIDU, and Tencent Holdings Ltd TCEHY used the new chip, called the H800, a company spokesperson said.

ETFs such as ProShares Ultra Semiconductors USD, VanEck Video Gaming And ESports ETFESPO, and VanEck Semiconductor ETF SMH ETFs have exposure to NVIDIA of over ~11% - ~20%.

USD gained over 65% YTD. ESPO and SMH gained over 21%-26% YTD. USD and ESPO gained close to 5% last week, while SMH gained over 2%. ESPO and SMH gained over 20% in the last quarter, while USD gained over 46%.

Price Action: NVDA shares traded lower by 2.43% at $265.43 on the last check Friday.