REX Financial Unveils NVDA-Centric ETF, NVII, Balancing Growth And Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2025
0mins
Should l Buy NVDA?
Source: Benzinga
Introduction of REX NVDA Growth & Income ETF: REX Financial has launched the REX NVDA Growth & Income ETF (NVII), which is designed to provide leveraged exposure to Nvidia while generating income through a strategic options overlay, marking the beginning of its new suite of single-stock covered calls.
Market Strategy and Goals: The fund aims to balance growth potential with income protection amidst rising interest in single-stock ETFs, particularly as Nvidia plays a significant role in the AI and semiconductor sectors, appealing to investors looking for momentum without fully committing to a growth-only strategy.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 190.050
Low
200.00
Averages
264.97
High
352.00
Current: 190.050
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.
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- Gross Margin Outlook: Despite investor skepticism regarding the 75% gross margin guidance, Arcuri stated that there are no near-term factors likely to impact this figure, indicating Nvidia's stability amid competitive threats from Google and Broadcom.
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- Improved Profitability: TSMC achieved a gross margin of 60% in 2025, expected to remain above 56% in the coming years, indicating robust pricing power and profitability amid soaring AI chip demand.
- Future Growth Expectations: TSMC anticipates nearly 30% revenue growth in 2026, with a projected CAGR approaching 25% from 2024 to 2029, reflecting its long-term growth potential in the AI market.
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See More
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- Earnings Expectations: UBS analyst Timothy Arcuri reiterated his Buy rating and raised the price target from $235 to $245, anticipating Nvidia's revenue to reach approximately $76 billion, surpassing the market's expectations of $74 billion to $75 billion for the next quarter.
- Gross Margin Outlook: Despite investor skepticism regarding the 75% gross margin guidance, Arcuri stated that there are no near-term factors likely to impact this figure, indicating Nvidia's stability amid competitive threats from Google and Broadcom.
- Market Signals: As the GTC conference approaches, Nvidia's management appears frustrated with prevailing market doubts, yet bullish supply chain signals support the company's prospects for growth and margin sustainability.
See More
Microsoft and Nvidia: Prime AI Stock Buying Opportunities
- Microsoft's Market Advantage: Microsoft is well-positioned in the generative AI space, with its software used by nearly every business globally; despite a 23% stock price drop, its Azure cloud platform achieved a 39% revenue growth in Q2 FY 2026, indicating strong market demand and future growth potential.
- Strong Financial Performance: In its latest earnings report, Microsoft reported a 17% revenue growth and a 23% net income growth, and although the market reacted negatively, this presents an excellent opportunity for investors to buy at a low valuation, especially following the 2023 market sell-off.
- Nvidia's Industry Leadership: As a primary beneficiary of AI spending, Nvidia's GPUs have become the standard for most AI hyperscalers; despite a 0.08% stock price decline, analysts expect a 53% revenue growth over the next year, showcasing strong growth prospects.
- Significant Investment Value: Nvidia's forward P/E ratio is 24, slightly above the S&P 500's 21.8, but given its rapid growth and leadership in a technological revolution, this valuation is considered relatively cheap, making it a rare buying opportunity for investors.
See More
AI Disruption in Software Sector May Lead to Job Losses
- AI Threat to Software Sector: Fundstrat's Tom Lee warns that AI is wreaking havoc on the $450 billion software sector, predicting significant job losses as software companies face existential threats, potentially leading to deflationary pressures.
- Changing Inflation Expectations: The core CPI is projected to drop to 2.52% in Friday's report, aligning with the 2017-2019 average, indicating a return to pre-COVID inflation levels, which may prompt the Fed to adopt a more dovish monetary policy.
- Market Capital Flow: Lee notes that investors are rotating out of the Magnificent 7 into companies supplying AI infrastructure, such as energy providers and industrial manufacturers, which could trigger a 10-20% decline in the U.S. market.
- Crypto Market Bottom Signal: Despite challenges, Lee believes the crypto market shows signs of bottoming due to positive fundamentals, even as investors struggle with the decision to stay in crypto versus moving to stocks and gold.
See More
ASML Stock Expected to Surge Due to AI Market Expansion
- Surging Market Demand: ASML's stock has rallied about 90% over the past year, and as the AI market expands, it is expected to surge even higher, reflecting strong demand for its advanced lithography systems.
- Monopoly Advantage: As the world's only producer of extreme ultraviolet (EUV) lithography systems, ASML's technology is widely adopted by top semiconductor manufacturers like TSMC, Samsung, and Intel, ensuring its critical role in chip production.
- Revenue Growth Expectations: ASML anticipates its revenue will reach between €44 billion (approximately $52.3 billion) and €60 billion (approximately $71.3 billion) by 2030, indicating a 10% compound annual growth rate (CAGR) from 2025, showcasing its long-term growth potential.
- Strong Profitability: Although ASML's price-to-earnings ratio stands at 41, indicating a premium valuation, its dominance in crucial chipmaking technology and direct exposure to the booming AI market justify this premium, with expectations for continued stock price growth into 2026 and beyond.
See More
Analysis of Smart Money Flows
- Concentration of Money Flows: Most portfolios are now heavily concentrated in the 'Magnificent Seven' stocks, indicating a high dependency on these companies, which could lead to concentrated investment risks.
- Apple's Outflow: In early trading, Apple Inc (AAPL) experienced negative money flows, suggesting a decline in investor confidence that may impact its short-term stock performance.
- Divergent ETF Performance: Both SPDR S&P 500 ETF Trust (SPY) and Nasdaq 100 ETF (QQQ) saw positive money flows in early trading, reflecting market optimism towards these indices, potentially driving related stocks higher.
- Investment Strategy Advice: Investors are advised to continue holding quality long-term positions while adding tactical investments based on market signals, and to stay within the Arora Protection Band to participate in upside while protecting against downside risks.
See More
TSMC: A Hidden AI Stock Giant
- Significant Revenue Growth: In 2025, TSMC's revenue increased by 36% in USD terms, with high-performance computing (HPC) revenue surging 48% and accounting for 58% of total revenue, highlighting its strong demand and market dominance in the AI chip sector.
- Improved Profitability: TSMC achieved a gross margin of 60% in 2025, expected to remain above 56% in the coming years, indicating robust pricing power and profitability amid soaring AI chip demand.
- Future Growth Expectations: TSMC anticipates nearly 30% revenue growth in 2026, with a projected CAGR approaching 25% from 2024 to 2029, reflecting its long-term growth potential in the AI market.
- Strategic Expansion Plans: TSMC plans to ramp up production of its 2nm chips in the second half of 2026 while expanding overseas plants in Japan, the U.S., and Europe to mitigate risks from potential Taiwan-China tensions, ensuring its competitive edge and supply chain security.
See More
