This year, lots of people are putting their money into funds that focus on Nvidia, a company that makes computer chips. They’re doing this because they’re really excited about artificial intelligence, which Nvidia plays a big role in. Since the beginning of the year, Nvidia’s stock has gone up a lot, nearly doubling in value, thanks to some really good predictions about its future and because people are getting really hyped up about AI again.
Some investors are also looking at funds that use special tricks to try to make even more money from Nvidia’s stock. These funds use things called derivatives and loans to try to make Nvidia’s stock go up even more, usually by two or three times what it would normally go up. In February, these types of funds saw more money coming in than ever before.
One fund called the GraniteShares 2x Long NVDA ETF saw so much money come in that it broke its previous record for how much money it gets in just the first six days of March. Overall, the amount of money in these types of funds for Nvidia has grown a lot since the beginning of the year, between five and 11 times more. And the value of these funds has gone up a ton too, anywhere from 145% to 220%, way more than other funds.
So basically, people are really excited about Nvidia and artificial intelligence, and they’re trying to make as much money as possible from it, even using special funds that make the investments riskier but potentially more rewarding.
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