Top 2024 ETFs tied to one stock: Nvidia
Nvidia's market cap is $3.5T, the largest of any US company
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The best three performing exchange-traded funds of 2024 have one thing in common: each is linked to AI super-stock Nvidia.
T-Rex 2X Long NVIDIA Daily Target ETF and GraniteShares 2x Long NVDA Daily ETF have advanced more than 400% each, while Direxion Daily NVDA Bull 2X Shares is up over 350%, according to VettaFi.
Best three performing ETFs of 2024 linked to Nvidia? (VettaFi?)
"NVDX, NVDL, and NVDU are 2x leveraged long bets on Nvidia which are typically used to capture short-term returns. Investors can double their gains (or losses) on Nvidia's daily return during big news events like earnings," Roxana Islam, VettaFi's head of sector and industry research told FOX Business.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDX | ETF OPPORTUNITIES TR T REX 2X LONG NVIDIA DAILY | 17.47 | +0.05 | +0.29% |
| NVDL | GRANITESHARES ETF TRUST 2X LONG NVDA DAILY ETF | 72.16 | +0.27 | +0.38% |
| NVDU | DIREXION DAILY NVDA BULL 2X SHARES | 116.69 | +0.56 | +0.48% |
With Nvidia shares up over 200% for 2024 the stakes were high for third quarter results which were solid. Revenue rose 94% to a record $35.1 billion from the same period a year ago, while profits jumped 111% to $0.78 per share. Both exceeded Wall Street estimates.
Nvidia
Ed Egilinsky, managing director at Direxion, told FOX Business ahead of the results that his ETFs are for nimble investors, big and small, such as NVDU.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 138.16 | +2.82 | +2.08% |
"It is providing two times the return of the Nvidia common stock for a given single day," he said. "The leverage could work for you if something is continually stair-stepping in your direction, no pun intended. But these vehicles were designed as short-term trading vehicles for active traders and should be monitored daily. You can't just look at it and say ‘forget it,’ even though Nvidia has done exceedingly well. But most stocks don't trend up consistently higher and up to the magnitude Nvidia is."
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Semiconductor chip installed on a circuit board. (Reuters/Florence Lo/Illustration / Reuters)
Nvidia shares fell before recovering midday Thursday. For those investors who wanted to capture the downside, other ETFs fit that strategy.
"We also have the non-leverage inverse short. So that would be just the opposite of what Nvidia does on a single day basis for a given single day. So if Nvidia's down 5% tomorrow, let's say we have a vehicle that would make 5%, and that's NVDD," Egilinsky added.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SOXL | DIREXION SHARES ETF TRUST DAILY SEMICONDUCTOR BULL 3X | 30.20 | +2.14 | +7.63% |
| SOXS | DIREXION SHARES ETF TRUST DIREXION DAILY SEMICONDUCTO | 21.84 | -1.81 | -7.65% |
With a market cap north of $3.5 trillion, Nvidia’s sway over the entire market and semiconductor sector is significant. Investors looking to capture a move up or down in a basket of semiconductor stocks could play Direxion’s Daily Semiconductor Bull and Bear 3X Shares SOXL or SOXS, Egilinsky noted.
The company forecasted fourth quarter revenue of $37.5 billion plus or minus 2%.
"The age of AI is in full steam, propelling a global shift to NVIDIA computing," said Jensen Huang, founder and CEO of NVIDIA said noting demand for both Blackwell and Hopper chips.
Nvidia CEO Jensen Huang delivers a keynote address during the Nvidia GTC Artificial Intelligence Conference at SAP Center in San Jose, California, on March 18. (Justin Sullivan/Getty Images / Getty Images)
Nvidia Chief Financial Officer Colette Kress told investors during last quarter’s earnings call about the expectations for these faster processing chips.
"Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal year '26. In Q4, we expect to get several billion dollars in Blackwell revenue," Kress said.
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Nvidia CEO Jensen Huang will sit down with FOX Business’ Liz Claman on "The Claman Countdown" at 3 p.m. ET on Thursday.
*This story has been updated to include Nvidia's results.