How to juice a bet on Nvidia’s stock
Chances are you already have exposure to Nvidia Corp. NVDA, -2.43% in your investment portfolio. Just about any actively managed large-cap U.S. fund with growth objective is likely to be holding shares of the maker of graphics processing units, or GPUs, that are being widely adopted to power artificial-intelligence technology. And if you are taking a low-cost index-fund approach, the $400 billion SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500 SPX by holding all of its stocks, has 3.2% of its portfolio invested in Nvidia.
Nvidia’s stock has more than tripled this year, and the company reported another blowout quarter on Wednesday, with quarterly sales rising 88% from the previous quarter and 101% from the year-earlier quarter.
For long-term investors, here’s a look behind Nvidia’s valuation, profit margins and projections for further sales growth within the semiconductor industry.
If you are more focused on the short term, or on day trading, there is an easy way to increase your opportunity for gains (or losses) with this one stock. In this week’s ETF Wrap, Isabel Wang looks at single-stock exchange-traded funds that use leverage to increase exposure to Nvidia for bullish or bearish trades.
More coverage of Nvidia:
- Nvidia’s jaw-dropping revenue forecast might not even be its peak
- Here’s the biggest surprise from Nvidia’s earnings, according to Morgan Stanley
- Nvidia to $1,100? This analyst thinks the stock can more than double.
- Why Nvidia’s AI bonanza may have only just begun
- Nvidia is seeing a generative-AI boom, but don’t bet on it spreading to the rest of tech
- Why AMD, Marvell, Intel and other chip stocks sank after Nvidia earnings
- It may not be too late to buy Nvidia, but here’s a better idea, say these fund managers
- Barron’s: Nvidia Stock Is Getting Cheaper While Tesla Just Keeps Getting More Expensive