Nvidia (NASDAQ: NVDA) has cemented its position as a leader in artificial intelligence (AI) and machine learning, transitioning from its origins as a graphics chip manufacturer to a pivotal player in the tech industry. This shift has led to a significant surge in its stock price, with shares up over 160% year-to-date and a market capitalization surpassing $3 trillion. The company's technology is integral to major corporations, including Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT), and Meta Platforms (NASDAQ: META).
As Nvidia approaches the release of its fiscal second-quarter earnings on August 28, Wall Street anticipates an earnings per share (EPS) of $0.59, a notable increase from the $0.25 reported in the same quarter last year. The company's ability to meet or exceed these expectations could drive its stock price even higher, buoyed by its lineup of AI chips and processors. However, concerns about delays in its next-generation Blackwell processors have raised questions about potential short-term volatility.
Goldman Sachs, in a recent research report, noted that while delays in the Blackwell processors could introduce some near-term uncertainty, strong customer demand from large cloud service providers and enterprises is expected to sustain Nvidia's competitive edge in AI and accelerated computing. This sentiment underscores the importance of Nvidia's management commentary and supply-chain data in shaping investor confidence moving forward.
For investors looking to capitalize on Nvidia's stock movements, REX Shares offers leveraged ETFs that provide opportunities to profit from both upward and downward trends. The T-REX 2X Long NVIDIA Daily Target ETF (BATS: NVDX) aims to amplify the daily performance of Nvidia's stock by 200%, whereas the T-REX 2X Inverse NVIDIA Daily Target ETF (BATS: NVDQ) seeks to achieve the opposite, providing 200% of the inverse daily performance. These leveraged instruments can generate quicker and larger returns but come with increased risk.
REX Shares also offers the REX FANG & Innovation Equity Premium Income ETF (BATS: FEPI), which combines exposure to major tech stocks, including Nvidia, Amazon, Apple (NASDAQ: AAPL), and Salesforce (NYSE: CRM), with the potential for income through a covered call strategy.
Investing in Nvidia is not without its risks. The company's ability to meet the evolving needs of its markets—gaming, data centers, professional visualization, and automotive—remains a critical challenge. Additionally, the use of leverage in ETFs can lead to greater volatility, particularly during periods of high market fluctuation.
Overall, Nvidia's stock performance and the availability of leveraged ETFs like those offered by REX Shares present significant opportunities for investors. However, these investments require a thorough understanding of the associated risks and active portfolio management.
