Nvidia fuels rush into AI-focused leveraged ETFs

Nvidia stokes stampede into AI-focused leveraged ETFs as investors scramble to ramp up bets on the artificial intelligence ￰0￱ chipmaker’s meteoric rise has made it the most traded name in the leveraged ETF market, drawing billions of dollars from traders hoping to capitalize on outsized ￰1￱ its earnings beat Wall Street expectations , Nvidia is at the center of Wall Street’s latest fixation — high-risk funds that track the daily swings of stocks linked to artificial ￰2￱ surge signifies the hunger to be exposed to companies powering the AI ￰3￱ leveraged ETFs linked to individual stocks rely on swaps or options to deliver double or even triple the usual daily share ￰4￱ Nvidia, for whose iconic stock this has already been a record-surge year, that has made for an appealing but perilous speculator’s ￰5￱ the first five months of 2025, over 100 new single-stock leveraged and inverse ETFs have debuted in the U.

S., most directly or indirectly tied to ￰6￱ products now dominate a lion’s share of assets in the space, which says a lot about how much Nvidia and other AI leaders like Tesla and Palantir vie for investor ￰7￱ are flooding into AI-themed ETFs The numbers tell the ￰8￱ merely eight months of 2025, asset managers have introduced 112 new leveraged and inverse ETFs linked to individual stocks. That’s nearly triple the 38 that launched in all of ￰9￱ told, there are now 190 single-stock leveraged and inverse ETFs listed in the ￰10￱ half are associated with companies trying to capitalize on the AI wave. Combined, these funds with AI exposure hold $17.7 billion of the $23.7 billion deployed in the leveraged ETF ￰11￱ of the stars in that crowd is the GraniteShares 2× Long NVDA Daily ￰12￱ has $4.56 billion in assets gathered in the 14 months since it opened in December ￰13￱ other big names driving the creation of ETFs are Tesla, Palantir, and NuScale Power, companies directly or indirectly linked to ￰14￱ ETF analyst at Morningstar, Bryan Armor, said the ETFs allow traders to increase their daily bets, adding that the potential upside is enormous but the risks are equally ￰15￱ earnings set tone for big market shake-up These speculative products get tested every earnings season, but the one from Nvidia’s report may be the check to ￰16￱ the results, options traders are positioning for a $260 billion market-value ￰17￱ is about a 6% move in either ￰18￱ ETFs, those moves can magnify gains or magnify ￰19￱ risks are not ￰20￱ shares dropped 17% earlier this year on fears of new competition from a Chinese chip ￰21￱ day, the GraniteShares 2× Nvidia ETF lost almost 34%.

But the upside can also be ￰22￱ week, surprise earner MongoDB also pointed to AI ￰23￱ stock rose more than 23% in after-hours ￰24￱ brand-new Tradr 2× Long MDB Daily ETF climbed 46% ￰25￱ issuers are raking it ￰26￱ ETFs average fees of 0.96%, almost double the industry average of 0.54%. But investors are still plowing money into the platform, eager for exposure to AI ￰27￱ Markiewicz, head of product and capital markets at Tradr ETFs, said demand for such products continues to ￰28￱ noted that his firm had recently launched a leveraged ETF tied to Constellation Energy, on the expectation that power producers would benefit as AI data centers consume more ￰29￱ added that there is currently a strong thirst among investors for companies that stand to profit from the AI ￰30￱ Difference Wire helps crypto brands break through and dominate headlines fast