Amid the latest rally brought in by trade talks optimism, NVIDIA NVDA reclaimed $3 trillion in its market cap by surging 50% from its April low. A strategic partnership with a state-backed Saudi Arabian AI company also drove the stock higher.
Investors seeking to capitalize on the growth story could consider investing in ETFs with the largest allocation to the AI chipmaker. These include Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, VanEck Fabless Semiconductor ETF SMHX, YieldMax Target 12 Semiconductor Option Income ETF SOXY and Columbia Semiconductor and Technology ETF SEMI.
U.S.-China Trade Deal
The United States and China have agreed to substantially roll back tariffs on each other’s goods for an initial 90-day period. Under the agreement, the United States will reduce tariffs on Chinese goods from 145% to 30%, while China will lower its tariffs on American imports from 125% to 10%. This development alleviated investor concerns about escalating trade tensions and their potential impact on technology companies like NVIDIA (read: Tap Mag-7 ETFs on Temporary US-China Trade Truce).
Strategic Deal
The two firms revealed plans to build next-generation AI infrastructure in Saudi Arabia. The agreement, unveiled as President Trump began a four-day tour of the Middle East, involves NVIDIA supplying several hundred thousand advanced GPUs over the next five years to an AI subsidiary of Saudi Arabia’s sovereign wealth fund. The partnership will begin with the deployment of a supercomputer powered by 18,000 NVIDIA GB300 chips.
Expanding AI Chip Demand
In a major policy shift, reports indicate that the Trump administration is considering lifting export restrictions on AI chips to the UAE — a move that could authorize shipments of over one million NVIDIA units. The development will significantly broaden the AI chipmaker’s market reach and help reduce exposure to regions impacted by U.S.-China tensions, positioning the company for sustained international growth (read: AI ETFs Set to Gain on Robust Meta, Microsoft Earnings).
Valuation Appears Good
Although NVIDIA is down nearly 3% in 2025, its recent gains point to a potential turnaround. The stock is currently trading at a P/E ratio of 8.67, in line with the Semiconductor - General industry. Analysts remain optimistic about the chipmaker’s growth prospects, citing strong demand for AI chips and strategic international partnerships.
Further, the stock is currently trading at a PEG ratio of 1.16, much lower than the industry average of 2.21. The lower the PEG ratio, the better the value, as investors would pay less for each unit of earnings.
ETFs to Tap
Strive U.S. Semiconductor ETF (SHOC)
Strive U.S. Semiconductor ETF seeks broad market exposure to the U.S. semiconductor sector. It follows the Bloomberg US Listed Semiconductors Select Total Return Index and holds 32 stocks in its basket, with NVIDIA accounting for the top firm at 21.9%. Strive U.S. Semiconductor ETF has an AUM of $73.9 million and charges 40 bps in annual fees. It trades in a volume of 12,000 shares per day on average and sports a Zacks ETF Rank #1 (Strong Buy).
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with NVIDIA occupying the top position at 19.7%. It has managed assets worth $19.8 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 7.5 million shares and flaunts a Zacks ETF Rank #1.
VanEck Fabless Semiconductor ETF (SMHX)
VanEck Fabless Semiconductor ETF offers exposure to companies involved in semiconductor production and is classified as a fabless. It follows the MarketVector US Listed Fabless Semiconductor Index and holds 23 stocks in its basket. NVIDIA takes the top spot at 19.7% share. VanEck Fabless Semiconductor ETF has accumulated $40.2 million in its asset base. It charges 35 bps in annual fees and trades in a volume of 38,000 shares. SMHX has a Zacks ETF Rank #1 (read: 5 Top-Ranked ETFs That Have Outperformed S&P 500 Since April Low).
YieldMax Target 12 Semiconductor Option Income ETF (SOXY)
YieldMax Target 12 Semiconductor Option Income ETF is an actively managed ETF that seeks a target annual income level of 12% and capital appreciation via direct investments in a select portfolio of semiconductor companies. NVIDIA occupies the top position in the portfolio with an 18.8% share. YieldMax Target 12 Semiconductor Option Income ETF debuted in last December and has gathered $5.5 million in its asset base. It charges 99 bps in annual fees and trades in an average daily volume of 3,000 shares.
Columbia Semiconductor and Technology ETF (SEMI)
Columbia Semiconductor and Technology ETF is an actively managed ETF that focuses on semiconductor and semiconductor-related businesses that may be poised to benefit from technology innovation and disruption. It holds 35 stocks in its basket, with NVIDIA occupying the top position at 16.6%. Columbia Semiconductor and Technology ETF has amassed $34.6 million in its asset base and trades in an average daily volume of 6,000 shares. It charges 75 bps in fees per year.
Single-Stock ETFs
Risk-aggressive investors could bet on single-stock ETFs with 200% exposure to NVIDIA. These include the T-REX 2X Long NVIDIA Daily Target ETF NVDX and the GraniteShares 2x Long NVDA Daily ETF NVDL.
Roundhill NVDA WeeklyPay ETF NVW seeks to provide weekly distributions and calendar week returns, equal to 1.2 times (120%) the calendar week total return of NVIDIA shares.
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