Nvidia's $5 Trillion Milestone Turns These AI ETFs Into Hot Trades

Core Insights - NVIDIA Corp. has achieved a historic market cap of over $5 trillion, driven by strong demand for AI and semiconductor products, leading to increased interest in semiconductor ETFs [1][7] Group 1: ETF Performance - The VanEck Semiconductor ETF, which has significant exposure to NVIDIA, gained 1.5% as investors anticipated stronger AI infrastructure demand [2] - Other ETFs, such as the Strive U.S. Semiconductor ETF and VanEck Fabless Semiconductor ETF, also saw a rise of 2% following NVIDIA's milestone [2] - Options-based funds like the YieldMax Target 12 Semiconductor Option Income ETF have gained popularity among yield-seeking investors, reflecting NVIDIA's status as a benchmark for AI growth [3] Group 2: NVIDIA's Strategic Collaborations - NVIDIA's recent rally was bolstered by announcements at its GTC event, including partnerships with the U.S. Department of Energy for AI supercomputers and collaborations with Uber for autonomous vehicles [4] - The company is also working with Eli Lilly and Nokia on biotech and 6G initiatives, respectively [4] Group 3: Supply Chain Dynamics - SK Hynix, a key supplier for NVIDIA, reported that its entire 2026 output is already sold out, indicating a sustained AI-driven chip boom [5] Group 4: Market Outlook - A potential thaw in U.S.-China trade relations could allow NVIDIA to regain access to its largest overseas market, enhancing its earnings outlook [6] - The ongoing demand for GPUs in the AI sector suggests that semiconductor ETFs may continue to experience significant growth [7]