Amid the artificial intelligence hype sweeping Wall Street, a massive influx of money has made the popular ETF tracking chip maker the largest in its category.
The iShares Semiconductor Exchange Traded Fund (ticker SOXX) saw nearly $805 million in inflows on Thursday, the highest for a single session since at least 2001, according to data compiled by Bloomberg. be. The fund has $8.8 billion in assets, according to Bloomberg Intelligence, making it the largest fund in the chip space, just ahead of the VanEck Semiconductor ETF (SMH) at $8.7 billion.
“SOXX could be a pretty decent AI play thanks to NVDA’s heavy weighting,” said BI analyst Athanasios Psarofagis, referring to NVIDIA, which achieved a record this week. He added that Thursday’s SOXX hit its second-highest ever trading day.
The Philadelphia Semiconductor Index, which consists of 30 semiconductor manufacturers, jumped 13 percent in two days. A series of ETFs with exposure to Nvidia and Marvel Technology also rose this week after the two companies reported strong results from working with AI.
Global X Robotics & Artificial Intelligence ETF (BOTZ), with Nvidia’s nearly 12% net stake, is on pace to gain 3% this week, while VanEck Video Gaming and eSports ETF (ESPO) is on track to add 1.9%. . . Marvel, meanwhile, holds more than 5% of the Defiance Next Generation Connectivity ETF (FIVG), which is up 4% in five days.
Meanwhile, the GraniteShares 1.5x Long NVDL Daily ETF (NVDL), which tracks Nvidia’s 1.5x daily performance, rose 36% this week amid higher-than-usual volume, marking its highest weekly gain since its inception.
Nvidia forecast better-than-analyst-expected revenue this week, citing demand for AI processors. The company said it generated about $11 billion in sales in the three months to July, well above the average analyst estimate of $7.2 billion. Marvel, on the other hand, surged after it said it expects revenue from trend’s growth engine to surge this year.
Investors have been paying close attention to AI trends, especially since OpenAI Inc.’s ChatGPT was announced last year. And it could be a boost for the ETF industry as well. BI projects that provide funding related to artificial intelligence could see their assets triple to $35 billion by 2030.
Meanwhile, it has also been a hot topic at industry conferences, and was a key focus of ETF managers at the recent Inside ETF conference in Hollywood, Florida.
“Thematic ETFs representing the future of technology, machine learning and AI are definitely making a comeback,” said Sylvia Jablonski, CEO of Defiance ETF.
– with the help of Isabel Lee.
