Nvidia, the chip maker synonymous with artificial intelligence (AI) and machine learning, has become a titan in the tech world. Years ago, Nvidia focused solely on graphics chips. However, recognizing the transformative power of AI, the company shifted gears and never looked back. Now, Nvidia’s AI chips power countless advanced models used by tech giants like Amazon, Alphabet, Microsoft, and Meta. With a market capitalization exceeding $3 trillion, Nvidia’s shares have surged over 160% year-to-date and more than 3,000% over the past five years.
Investors are eagerly awaiting Nvidia’s upcoming fiscal second-quarter earnings report, scheduled for August 28th. Wall Street anticipates earnings per share of $0.59, a significant jump from the $0.25 reported in the same period last year. If Nvidia surpasses these expectations or provides a positive outlook for the future, the stock could soar.
Bulls remain optimistic about Nvidia’s position in the AI market, citing its robust lineup of chips and processors. However, concerns linger about potential delays in its next generation of AI chips, dubbed Blackwell processors, due to reported design flaws. Investors and analysts will be closely watching Nvidia’s commentary on this issue during the earnings call.
For investors seeking to capitalize on Nvidia’s potential, both on the upside and downside, REX Shares offers a suite of leveraged ETFs. These ETFs leverage debt or derivatives to amplify returns, offering the potential for quicker and larger gains than the underlying stock.
One such ETF, T-REX 2X Long NVIDIA Daily Target ETF (NVDX), aims to magnify Nvidia’s daily performance by 200%. The fund has already seen impressive gains, exceeding 350% year-to-date. Conversely, the T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ) provides a means for bearish investors to profit from a potential decline in Nvidia’s share price.
In addition to these leveraged ETFs, REX Shares also offers the REX FANG & Innovation Equity Premium Income ETF (FEPI), which combines exposure to major tech companies, including Nvidia, Amazon, Apple, and Salesforce, with the potential for income through covered call strategies.
Investing in Nvidia, especially with leveraged ETFs, comes with inherent volatility. While the stock has enjoyed tremendous growth, it’s also prone to fluctuations.
REX Shares’ leveraged ETFs offer investors a way to amplify their exposure to Nvidia’s performance, whether bullish or bearish. However, it’s crucial to understand the risks associated with leveraged instruments and to carefully consider your investment objectives and risk tolerance before making any decisions.
