Alternative Investments/AI: AI Becomes NVIDIA’s Largest Business; ETFs Holding NVDA
NVIDIA could be the stock to hold through the next decade.
Three very significant events took place in 2020. First, the aggregate market cap of the computer chip industry overtook that of the oil industry. The top 30 semi-conductor companies are together valued at $2.5 trillion, while the 30 biggest oil firms are $1.7 trillion. Second, NVIDIA (NASDAQ: NVDA) knocked Intel (NASDAQ: INTC) off its pedestal as America’s biggest chipmaker. Third, AI vaulted to become the biggest business at NVIDIA. (NASDAQ)
Taken together, the three events send a powerful message. Semiconductors (chips) are the new lifeblood and most important resource for the world economy. Modern life is hopelessly dependent upon chips – the internet, smartphones, cars, planes, laptops, massive data centers, you name it.
Secondly, there’s a new gorilla in the digital room: AI.
AI is driving autonomous vehicles, computer vision, space tourism, drug research including vaccines, agriculture, weather research, and so much more.
And NVIDIA is the go-to company for cutting-edge AI chips.
The tech giant, therefore, embodies both the rosy prospects of the semiconductor industry, as well as its industry leadership in AI.
ETFs holding NVIDIA
Here are 10 ETFs that hold NVIDIA in their portfolio:
|Ticker||Fund Name||Segment||NVIDIA Allocation|
|USD||ProShares Ultra Semiconductors||Leveraged Equity: U.S. Semiconductors||11.80%|
|BIBL||Inspire 100 ETF||Equity: U.S. – Large Cap||7.92%|
|BOTZ||Global X Robotics & Artificial Intelligence ETF||Equity: Global Robotics & AI||7.81%|
|ESPO||VanEck Vectors Video Gaming and eSports ETF||Equity:Global Video Games & eSports||7.71%|
|SOXX||iShares PHLX Semiconductor ETF||Equity: U.S. Semiconductors||7.17%|
|SMH||VanEck Vectors Semiconductor ETF||Equity: Global Semiconductors||6.54%|
|RISN||Inspire Tactical Balanced ESG ETF||Asset Allocation: Target Outcome||6.39%|
|HIPR||Direxion High Growth ETF||Equity: U.S. – Total Market Growth||6.37%|
|SOXL||Direxion Daily Semiconductor Bull 3X Shares||Leveraged Equity: U.S. Semiconductors||6.13%|
|SPMO||Invesco S&P 500 Momentum ETF||Equity: U.S. – Large Cap||5.95%|
|HERO||Global X Video Games & Esports ETF||Equity:Global Video Games & eSports||5.70%|
Source for NVIDIA ETFs data: ETF.com
Related Story: Univ. of Florida in $70M Public-Private AI Partnership With NVIDIA
Pictured: The NVIDIA A100 GPU
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