The Consumer Electronics Show (CES) took place last week in Las Vegas and the convention served as a reminder that Nvidia (NVDA) is a bellwether stock – a logical status given that it’s the largest company in the world by market value.
Nvidia commanding the spotlight at CES is also a reminder that there will be plenty of opportunities this year for risk-tolerant traders to consider the the Direxion Daily NVDA Bull 2X Shares (NVDU) – an ETF designed to deliver 200% of the daily performance of the semiconductor stock. Yes, CES is over. However, some of the topics discussed there by Nvidia CEO Jensen Huang are likely to have wide-ranging implications.
“CEO Jensen Huang discussed three large topics, which included a discussion of new open physical AI models (including new versions of Cosmos and GR00T), the introduction of the Alpamayo Family of Open-Source AI models and tools used to address the next generation of Autonomous vehicle development, and the progress of the Vera Rubin Platform (inclusive of six new chips), with the last being the most important from a semiconductor perspective,” noted Deutsche Bank analyst Ross Seymore. “Huang excitingly confirmed that Vera Rubin is in production today, indicating that it remains on track for a 2H26 ramp, and highlighted impressive performance improvements versus the Grace Blackwell platform.”
He rates the stock “hold.” However, his price target of $215 implies double-digit, on a percentage basis, upside from current levels. This indicates short-term traders may have reasons to examine NVDU this year.
Catalysts Abound for NVDU in 2026
Experienced traders know that the best use for leveraged ETFs like NVDU is over short holding periods. This indicates these funds are often event- or headline-driven products. Fortunately, Nvidia is one of the stocks that obliges on those fronts. It’s already clear 2026 is likely to be another year of robust new flows from the chip behemoth.
“Despite the GPU only possessing ~1.7x the number of transistors per rack, the system benefits are 10x more tokens at the same cost (or the same amount of tokens 1/10th the cost) and ¼ of the number of GPUs to train MOE models (versus Blackwell),” added Seymore. “This highlights the benefits of extreme co-design throughout the rack and ultimately should lead to Vera Rubin ramping faster than Grace Blackwell, in part due to the ease of installation.”
Nvidia’s product updates over 2026 could deliver the headlines traders need to make proper use of NVDU.
“We believe that the additional details provided on the upcoming Vera Rubin architecture and system level benefits it offers highlight the company’s NVDA’s position as the leader in the AI market across an increasing number of applications and products,” concluded the Deutsche Bank analyst.
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