On the evening of Wednesday, September 11, Nvidia (NVDA) CEO Jensen Huang, during a technology discussion organized by Goldman Sachs (GS) with Goldman Sachs CEO David Solomon, revealed Nvidia's expansion plans for the coming months and provided an optimistic outlook on the demand for AI chips. This news spurred a strong rebound in Nvidia's stock, which ultimately closed up 8.15%, boosting the company's market value by $215.8 billion (approximately RMB 1.54 trillion). Nvidia's strong performance not only energized the market but also directly impacted ETFs related to Nvidia.
Nvidia's Expansion Plans and AI Demand Drive the Market
During the discussion, Huang stated that Nvidia will expand production capacity in the fourth quarter and continue to expand in 2024 to meet strong market demand. He particularly highlighted the overwhelming demand for the company's latest AI chip, Blackwell, with customers eager to be the first to obtain it and maximize their capacity to stay ahead of competitors. Huang's remarks conveyed confidence in the AI chip market's outlook, not only boosting Nvidia's stock price but also significantly enhancing investor sentiment toward ETFs associated with Nvidia.
Huang Highlights AI and the Future of Data Centers
Huang also elaborated on Nvidia's core technical advantages, especially in terms of algorithm optimization and architectural consistency, which help clients significantly reduce total cost of ownership and improve competitiveness. He further noted that with the end of Moore's Law, general-purpose computing has reached its limits, and the key to the future lies in accelerating computing to enhance the density and energy efficiency of data centers. This suggests that Nvidia's leadership extends not only to chip design but also to improving overall solution efficiency.
Huang predicted that trillions of dollars' worth of general-purpose data centers will gradually be replaced by accelerated computing centers. By speeding up tasks like SQL processing and recommendation systems, companies will see significant performance improvements and cost savings. He emphasized that generative AI technology will transform the way we work, with AI tools and digital assistants becoming essential partners in various industries, further driving productivity.
Impact on Nvidia-Related ETFs
Huang's remarks, along with Nvidia's stock surge, directly affected several ETFs closely linked to Nvidia, particularly those focused on AI and semiconductors:
Global X NVIDIA ETF (NVDL)
As a leveraged ETF, NVDL directly benefits from Nvidia's stock rise. Huang's expansion plans and optimistic outlook on AI chip demand bring higher volatility and return potential to this ETF.VanEck Semiconductor ETF （SMH）
SMH holds shares of several leading global semiconductor companies, with Nvidia being a major component. Huang's remarks not only boosted Nvidia but also lifted sentiment across the semiconductor industry, making SMH poised to benefit from continued AI chip demand expectations.iShares Semiconductor ETF (SOXX)
SOXX's diversified investment strategy provides more stability within the semiconductor industry. As Nvidia's capacity expansion and AI demand grow, SOXX could perform strongly in the coming months.Invesco QQQ Trust (QQQ)
Given that QQQ holds a large number of technology stocks, with Nvidia occupying a significant position, Huang's comments positively impacted the entire tech sector, driving QQQ's overall performance.SPDR S&P 500 ETF Trust (SPY)
SPY holds a substantial amount of Nvidia stock, and Nvidia's rise directly boosted this broad-market ETF's performance, making it a reliable choice for investors seeking stable market exposure.
Investment Recommendations
In light of Huang's optimistic forecast for Nvidia's expansion plans and AI chip demand, investors may want to reassess their investment strategies. For those willing to take on higher risk, NVDL offers high-return potential, while more conservative investors may consider diversified semiconductor ETFs such as SOXX or SMH. If investors are looking for broad exposure to the tech sector, QQQ and SPY are worth considering.
In summary, Huang's remarks once again underscore Nvidia's leadership in the AI and semiconductor sectors, presenting investment opportunities in related ETFs. As demand for AI chips surges and Nvidia's expansion plans progress, these ETFs are likely to continue rising in the future.
