Nvidia’s stock continues to recover following April’s tariff-fueled sell-off. The chipmaker appears to be picking up where it left off as data center demand continues to rise.
The long-term growth trajectory should also work in favor for Nvidia as AI platforms continue to require heavier processing power. Nvidia continues to up the ante with its technological offerings to data centers to support the growing use of AI. This should help maintain demand for Nvidia products for the unforeseeable future.
“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of Nvidia following the release of its latest earnings report.
Speaking of which, its Q1 earnings beat analyst expectations. Earnings per share came in at $0.96 versus the $0.93 expected, while revenue was $44.06 billion compared to the $43.31 billion expected. Huang sees momentum increasing for AI on a global scale, substantiating the need for Nvidia’s chips moving forward.
“Global demand for NVIDIA’s AI infrastructure is incredibly strong,” he added. “AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”
If bullishness continues, traders can double their exposure to Nvidia’s stock using the Direxion Daily NVDA Bull 2X Shares (NVDU). The single-stock ETF gives traders the ability to double their Nvidia stock exposure without having to purchase more shares of the company.
More Semiconductor Trading Tools
Flexibility is imperative in today’s market so the ability to profit from an up or downtrend is crucial. With ongoing trade deal negotiations continuing, any negative tariff news could certainly upend Nvidia’s rally. If the stock price starts to dip, consider using the Direxion Daily NVDA Bear 1X Shares (NVDD).
Trading Nvidia’s individual stock certainly opens traders up to concentration risk. One way to mitigate this is by trading the entire semiconductor industry. This is available with the Direxion Daily Semiconductor Bull and Bear 3X Shares (SOXL). The fund tracks the largest movers and shakers within the industry, including Nvidia. The fund also adds exposure to other industry giants like Broadcom, Texas Instruments, and Advanced Micro Devices.
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