Record $805 million inflows into SOXX ETF after Nvidia

With the artificial-intelligence hype spreading on Wall Street, a huge influx has become a popular tracking ETF maker that is the largest in its category.

The iShares Semiconductor exchange-traded fund (ticker SOXX) saw nearly $805 million inflows on Thursday, the most for a single session going back to at least 2001, data compiled by Bloomberg show. The intake puts the fund as the largest in the chip space, with $8.8 billion in assets, according to Bloomberg Intelligence, just ahead of the VanEck Semiconductor ETF ( SMH ), which has $8.7 billion.

“SOXX will be a great AI game thanks to NVDA’s heavy weight,” said BI analyst Athanasios Psarofagis, referring to Nvidia Corp., which hit a record this week. He added that SOXX on Thursday saw its second highest trading day ever.

The Philadelphia Semiconductor Index of 30 chipmakers rose 13% in two days. A set of ETFs with exposure to Nvidia and Marvell technology Inc. also got growth this week after companies reported stronger earnings due to their work in AI.

The Global X Robotics & Artificial Intelligence ETF (BOTZ), which has a nearly 12% net weighting of Nvidia, is on pace for a 3% rally this week, while the VanEck Video Gaming and eSports ETF ( ESPO) is on track to add 1.9%. On the other end, Marvell makes up more than 5% of the Defiance Next Gen Connectivity ETF (FIVG), and that fund is up 4% in five-day progress.

Meanwhile, the GraniteShares 1.5x Long NVDL Daily ETF (NVDL), which tracks 1.5 times Nvidia’s daily performance, jumped 36% this week amid higher-than-usual volume for its best week yet. progress since its inception.

Nvidia this week prophecy sales that blew past analysts’ estimates, citing the need for AI processors. Sales for the three months ending in July will be about $11 billion, the company said, above the average analyst estimate of $7.2 billion. Marvell, while, soared after it said it expects revenue from the fashion driver of growth to rise this year.

Investors have been hyper-focused on AI trends, especially since the launch of OpenAI Inc.’s ChatGPT last year. And it could also be a boom for the ETF space – BI projects that funds linked to artificial intelligence will see their assets grow threefold to $35 billion by 2030.

Meanwhile, it’s also all the talk at industry conferences — it was a key focus of ETF managers at the recent Inside ETF conference in Hollywood, Florida.

“Thematic ETFs that represent the future of technology, machine learning and AI are sure to be transformative,” said Sylvia Jablonski, chief executive officer of Defiance ETF.

–With help from Isabelle Lee.

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