Nvidia shares surged to new all-time highs, hinting at potential further growth still to come, according to Jan van Eck, CEO of investment firm VanEck. Van Eck, who oversees the largest US semi exchange-traded fund, sees Nvidia’s early mover advantage in the race to fabricate artificial intelligence chips as a significant factor contributing to the performance of the stock, as well as its potential to outperform its competitors.

Nvidia’s Competitive Edge and Stride in the GPU Market

Van Eck highlighted that Nvidia enjoys significant competitive advantages and almost quasi-monopolistic positions in the industry. With incredible pricing power and a well-established presence in the AI sector, the company remains a formidable force primarily in the graphics processing units (GPUs) market. Van Eck exemplified Nvidia’s leadership in the GPU space, stating, “Who competes against Nvidia for GPUs? They’ve got great pricing power. They’ve got AI.”

VanEck Semiconductor ETF and Nvidia’s Dominance

As the leading holding of VanEck Semiconductor ETF, Nvidia holds a substantial weight in the fund’s assets. VanEck’s ETF tracks 25 of the largest semiconductor companies in the market, and according to FactSet, Nvidia represents nearly 25% of the fund’s holdings.

Advanced Capabilities to Maintain Nvidia’s Market Position

As competing companies enter the artificial intelligence GPU market, Jan van Eck believes Nvidia’s more advanced capabilities could help shield the company’s market standing as the most valuable semiconductor stock. He alluded to Nvidia’s strategic efforts in expanding their product offerings with software services and cloud solutions, asking, “But who can really compete with them?”

Top Holdings and Solid ETF Performance

Alongside Nvidia, the VanEck Semiconductor ETF’s leading holdings as of the latest data include Taiwan Semiconductor and Broadcom. The ETF has achieved significant growth, with a more than 12% increase in value since the beginning of this year.

Disclaimer: The information provided here is solely for informational purposes. It should not be regarded as investment or financial advice.