Published on 23 Feb 2024 on Zacks via Yahoo Finance
Nvidia Sparks Double-Digit Rally in These Leveraged ETFs
U.S. stocks reached new peaks on Thursday, propelled by Nvidia’s NVDA blockbuster earnings report. Both the S&P 500 and Dow Jones concluded the day at all-time highs, gaining 2.2% and 1.2%, respectively. The Nasdaq Composite Index closed the day just below its peak but outperformed the other indices, rising 3.1%.Notably, the Nasdaq 100 spiked more than 3% to achieve a historic high, marking its most significant single-day gain since March 2000, according to Bespoke Investment Group.The broad rally injected double-digit gains in the leveraged space. We have highlighted five of these that led the way higher in Thursday's trading session. These include GraniteShares 2x Long NVDA Daily ETF NVDL, ProShares Ultra Semiconductors USD, BMO REX MicroSectors FANG+ Index 3X Leveraged ETN FNGU and GraniteShares 2x Long COIN Daily ETF CONL. These funds will continue to be investors’ darlings, at least in the near term, provided the sentiments remain bullish.
A Peek into Nvidia’s Earnings
This leading U.S. chip designer exceeded fourth-quarter earnings and revenue expectations. The company reported a staggering 265% increase in revenues and provided an optimistic outlook, indicating a surge in demand for AI hardware. This not only showcased Nvidia's robust position in the AI chip market but also signaled promising prospects for the semiconductor industry in 2025 and beyond (read: Nvidia Drives AI and Semiconductor Stocks: ETFs to Gain).Nvidia has been the biggest beneficiary of technology companies' race to build AI into their products and services. Nvidia founder and CEO Jensen Huang said that “accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.”Nvidia's stock jumped about 16% in Thursday, achieving a new high and adding $277 billion to its market cap — the biggest one-day boost ever recorded. The one-day gain topped Meta Platforms Inc.’s (META) historic gain just three weeks ago.The bullish sentiment extended globally, with advancements in chip stocks leading Japan's Nikkei 225 to surpass a record set in 1989 and the pan-European Stoxx 600 hitting a new all-time intraday high.