Retail Investors Drive Growth in Leveraged Single-Stock ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Newsfilter
- Retail Trading Dominance: A study co-authored by Direxion reveals that nearly 90% of trading in leveraged single-stock ETFs in the U.S. is driven by individual investors, highlighting their strong interest in short-term stock volatility and significantly propelling market growth.
- Significant Market Share: Last year, trading in leveraged single-stock ETFs accounted for 8% of total trading across U.S. exchanges, indicating the widespread adoption of these investment vehicles among retail investors and exacerbating market speculation.
- Surge in Product Offerings: Currently, there are 355 leveraged single-stock ETFs listed in the U.S., with 80 launched since January 2025, demonstrating the increasing competition among asset managers to cater to retail demand.
- Regulatory Challenges: Despite repeated efforts by asset managers to persuade the SEC to allow single-stock leveraged products for higher returns, the SEC's resistance may hinder further expansion of this market, impacting future investment strategies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 189.820
Low
200.00
Averages
264.97
High
352.00
Current: 189.820
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Q4 Earnings Preview: Key Observations
- Market Weight Analysis: Nvidia stock represents over 7% of the S&P 500, making it a significant weight in the index, which could influence overall market performance.
- Earnings Momentum Observation: Despite accelerating earnings trends, Nvidia's stock performance has not necessarily followed suit, as past strong earnings did not always lead to stock price increases, necessitating close attention to Thursday's trading performance.
- Analyst Rating Status: Currently, Nvidia has 77 buy ratings, 5 hold ratings, and 1 sell rating, indicating high market expectations; any disappointment in earnings could lead to potential downgrades.
- Technical Level Analysis: Nvidia's stock has risen 35.5% over the past 52 weeks but only 1.8% year-to-date, with a critical support level at $170; a break above $195 could trigger a larger market rally.
See More
Nvidia's AI Chip Market Outlook Analysis
- Market Dominance: Nvidia continues to dominate the AI data center market with its GPU chips, particularly with the newly launched Rubin platform, which is expected to enhance the company's competitiveness in the rapidly evolving AI sector.
- Shift to Inference Computing: Designed with inference in mind, Rubin performs inference computing at 10% of the cost per million tokens compared to the existing Blackwell GB200 NVL72, significantly improving efficiency and meeting AI hyperscalers' demand for cost-effectiveness.
- Sales Growth Expectations: Analysts anticipate Nvidia's sales will grow from $187 billion to $327 billion, and then reach $419 billion in the following fiscal year, indicating strong growth potential, although risks remain due to its concentrated customer base.
- Increased Competitive Pressure: While Nvidia holds a leading position in the AI data center chip market, it faces challenges from competitors like Broadcom, prompting investors to monitor the company's updates on market outlook in the upcoming earnings report to assess the timing for investment.
See More
Top AI Stocks to Buy Now: Nvidia, Amazon, Meta
- Nvidia's Market Leadership: Nvidia's revenue surged 62% to $57 billion in the latest quarter, with a gross margin exceeding 70%, showcasing its strong profitability in the AI chip sector, and is expected to benefit from the projected trillion-dollar AI market by 2030.
- Amazon's AI Integration: Amazon optimizes delivery routes using AI, saving time and costs, while its cloud business AWS offers a range of AI products; currently trading at a forward P/E of 27, down from 35 a few months ago, making it attractive for investors seeking safety and growth.
- Meta's Advertising Revenue Potential: Meta's investments in AI enhance advertising efficiency, potentially increasing ad spending; with a forward P/E of 21, it demonstrates competitiveness in the ad market and future growth prospects, particularly driven by AI advancements.
- Investment Opportunities in AI Sector: As AI technology continues to evolve, early investors may see significant returns in companies like Nvidia, Amazon, and Meta, which are poised to drive overall market performance.
See More
Michael Burry's Bearish Prediction on AI Stocks
- Burry's Accusations Against Big Tech: Burry claims that major tech firms like Meta and Microsoft are manipulating accounting practices and extending depreciation schedules to inflate earnings, although he overlooks the long-term value of AI infrastructure and the potential for reusing GPUs.
- CAPEX and Cash Flow Strain: Burry warns that unprecedented capital expenditures will strain cash flow; however, Alphabet's cash from operations has soared from under $100 billion to $164 billion by 2026, demonstrating significant cash flow growth driven by AI.
- NVIDIA Valuation Controversy: Burry compares NVIDIA to Cisco during the 2000 internet bubble, arguing it is overvalued, yet NVIDIA's current P/E ratio of 47 is significantly lower than Cisco's over 200 at its peak, highlighting fundamental differences between the two.
- Surge in H100 Rental Prices: Since mid-December, rental prices for NVIDIA's H100 GPUs have increased by approximately 17%, indicating strong demand for AI infrastructure, which bodes well for related stocks like Nebius and CoreWeave.
See More
Retail Investors Drive Growth in Leveraged Single-Stock ETFs
- Retail Trading Dominance: A study co-authored by Direxion reveals that nearly 90% of trading in leveraged single-stock ETFs in the U.S. is driven by individual investors, highlighting their strong interest in short-term stock volatility and significantly propelling market growth.
- Significant Market Share: Last year, trading in leveraged single-stock ETFs accounted for 8% of total trading across U.S. exchanges, indicating the widespread adoption of these investment vehicles among retail investors and exacerbating market speculation.
- Surge in Product Offerings: Currently, there are 355 leveraged single-stock ETFs listed in the U.S., with 80 launched since January 2025, demonstrating the increasing competition among asset managers to cater to retail demand.
- Regulatory Challenges: Despite repeated efforts by asset managers to persuade the SEC to allow single-stock leveraged products for higher returns, the SEC's resistance may hinder further expansion of this market, impacting future investment strategies.
See More
Nvidia Short Interest Climbs to 265 Million Shares Ahead of Earnings
- Rising Short Interest: As of the latest data, Nvidia's short interest has reached 265 million shares, valued at approximately $50 billion, making it the stock with the highest short exposure in the S&P 500, indicating market skepticism about its future performance.
- Stable Technical Indicators: Nvidia's 50-day moving average has remained flat since November, with both MACD and RSI indicators near neutral, suggesting a lack of strong directional bias in the market, which may lead investors to adopt a wait-and-see approach.
- Strong Earnings Expectations: Analysts forecast a 67% increase in Nvidia's revenue to $65.7 billion and a 71% rise in adjusted earnings per share to $1.53, indicating a bullish outlook for the upcoming earnings report.
- Market Volatility Anticipation: The options market is pricing in an implied 4% one-day move post-earnings, suggesting a potential $2 billion swing, reflecting investor concerns about future uncertainties.
See More
Nvidia's Q4 Earnings Preview: Key Observations
- Market Weight Analysis: Nvidia stock represents over 7% of the S&P 500, making it a significant weight in the index, which could influence overall market performance.
- Earnings Momentum Observation: Despite accelerating earnings trends, Nvidia's stock performance has not necessarily followed suit, as past strong earnings did not always lead to stock price increases, necessitating close attention to Thursday's trading performance.
- Analyst Rating Status: Currently, Nvidia has 77 buy ratings, 5 hold ratings, and 1 sell rating, indicating high market expectations; any disappointment in earnings could lead to potential downgrades.
- Technical Level Analysis: Nvidia's stock has risen 35.5% over the past 52 weeks but only 1.8% year-to-date, with a critical support level at $170; a break above $195 could trigger a larger market rally.
See More
Nvidia's AI Chip Market Outlook Analysis
- Market Dominance: Nvidia continues to dominate the AI data center market with its GPU chips, particularly with the newly launched Rubin platform, which is expected to enhance the company's competitiveness in the rapidly evolving AI sector.
- Shift to Inference Computing: Designed with inference in mind, Rubin performs inference computing at 10% of the cost per million tokens compared to the existing Blackwell GB200 NVL72, significantly improving efficiency and meeting AI hyperscalers' demand for cost-effectiveness.
- Sales Growth Expectations: Analysts anticipate Nvidia's sales will grow from $187 billion to $327 billion, and then reach $419 billion in the following fiscal year, indicating strong growth potential, although risks remain due to its concentrated customer base.
- Increased Competitive Pressure: While Nvidia holds a leading position in the AI data center chip market, it faces challenges from competitors like Broadcom, prompting investors to monitor the company's updates on market outlook in the upcoming earnings report to assess the timing for investment.
See More
Top AI Stocks to Buy Now: Nvidia, Amazon, Meta
- Nvidia's Market Leadership: Nvidia's revenue surged 62% to $57 billion in the latest quarter, with a gross margin exceeding 70%, showcasing its strong profitability in the AI chip sector, and is expected to benefit from the projected trillion-dollar AI market by 2030.
- Amazon's AI Integration: Amazon optimizes delivery routes using AI, saving time and costs, while its cloud business AWS offers a range of AI products; currently trading at a forward P/E of 27, down from 35 a few months ago, making it attractive for investors seeking safety and growth.
- Meta's Advertising Revenue Potential: Meta's investments in AI enhance advertising efficiency, potentially increasing ad spending; with a forward P/E of 21, it demonstrates competitiveness in the ad market and future growth prospects, particularly driven by AI advancements.
- Investment Opportunities in AI Sector: As AI technology continues to evolve, early investors may see significant returns in companies like Nvidia, Amazon, and Meta, which are poised to drive overall market performance.
See More
Michael Burry's Bearish Prediction on AI Stocks
- Burry's Accusations Against Big Tech: Burry claims that major tech firms like Meta and Microsoft are manipulating accounting practices and extending depreciation schedules to inflate earnings, although he overlooks the long-term value of AI infrastructure and the potential for reusing GPUs.
- CAPEX and Cash Flow Strain: Burry warns that unprecedented capital expenditures will strain cash flow; however, Alphabet's cash from operations has soared from under $100 billion to $164 billion by 2026, demonstrating significant cash flow growth driven by AI.
- NVIDIA Valuation Controversy: Burry compares NVIDIA to Cisco during the 2000 internet bubble, arguing it is overvalued, yet NVIDIA's current P/E ratio of 47 is significantly lower than Cisco's over 200 at its peak, highlighting fundamental differences between the two.
- Surge in H100 Rental Prices: Since mid-December, rental prices for NVIDIA's H100 GPUs have increased by approximately 17%, indicating strong demand for AI infrastructure, which bodes well for related stocks like Nebius and CoreWeave.
See More
Retail Investors Drive Growth in Leveraged Single-Stock ETFs
- Retail Trading Dominance: A study co-authored by Direxion reveals that nearly 90% of trading in leveraged single-stock ETFs in the U.S. is driven by individual investors, highlighting their strong interest in short-term stock volatility and significantly propelling market growth.
- Significant Market Share: Last year, trading in leveraged single-stock ETFs accounted for 8% of total trading across U.S. exchanges, indicating the widespread adoption of these investment vehicles among retail investors and exacerbating market speculation.
- Surge in Product Offerings: Currently, there are 355 leveraged single-stock ETFs listed in the U.S., with 80 launched since January 2025, demonstrating the increasing competition among asset managers to cater to retail demand.
- Regulatory Challenges: Despite repeated efforts by asset managers to persuade the SEC to allow single-stock leveraged products for higher returns, the SEC's resistance may hinder further expansion of this market, impacting future investment strategies.
See More
Nvidia Short Interest Climbs to 265 Million Shares Ahead of Earnings
- Rising Short Interest: As of the latest data, Nvidia's short interest has reached 265 million shares, valued at approximately $50 billion, making it the stock with the highest short exposure in the S&P 500, indicating market skepticism about its future performance.
- Stable Technical Indicators: Nvidia's 50-day moving average has remained flat since November, with both MACD and RSI indicators near neutral, suggesting a lack of strong directional bias in the market, which may lead investors to adopt a wait-and-see approach.
- Strong Earnings Expectations: Analysts forecast a 67% increase in Nvidia's revenue to $65.7 billion and a 71% rise in adjusted earnings per share to $1.53, indicating a bullish outlook for the upcoming earnings report.
- Market Volatility Anticipation: The options market is pricing in an implied 4% one-day move post-earnings, suggesting a potential $2 billion swing, reflecting investor concerns about future uncertainties.
See More
