To The Moon

Early yesterday morning, Nvidia released its latest earnings report. The stock surged immediately after the results came out, and the strong momentum continued into the regular trading session, with Nvidia jumping 8.74%. The rally also lifted the broader market and related ETFs.$英伟达(NVDA)$

So why was Nvidia’s earnings report powerful enough to lift the entire market?

1. The Leadership Effect

Nvidia is the undisputed leader of the global semiconductor industry. Its market capitalization is around $5.5 trillion, roughly 2.5 times that of TSMC, the second-largest semiconductor company by market value.

When an industry leader of this size posts strong earnings, the impact is rarely limited to the company itself. It can lift sentiment across the entire semiconductor sector.

2. AI Remains the Hottest Theme in the Market

Robinhood Markets Chief Investment Officer Stephanie Guild told Bloomberg Television that the current market is being driven almost entirely by the AI theme.

Against this backdrop, when the leading company in the AI sector delivers earnings that significantly beat expectations, it has the ability to push the entire sector higher.

3. Wider U.S. Trade Deficit and Surging Capital-Equipment Imports

The U.S. trade deficit has widened further, while imports of capital equipment have surged significantly.

This reflects continued strength in corporate investment and has provided further support for the upward trend in the semiconductor and AI sectors.

4. U.S. Economic Fundamentals Remain Solid

The fundamentals of the U.S. economy remain relatively healthy, and the current level of interest rates has not yet significantly weakened economic activity.

Federal Reserve Chair Warsh is set to speak at the Jackson Hole Economic Policy Symposium, where he may provide further details on the Fed’s assessment of the inflation outlook.

Kansas City Fed President Schmid said on Thursday that, despite inflation remaining above the Fed’s 2% target, the current level of interest rates does not appear to be restraining the U.S. economy.

Chicago Fed President Goolsbee also said that the latest three-month inflation figures “do not look too bad.”

Overall, the U.S. technology sector remains extremely strong, while broader economic fundamentals have not materially deteriorated. This helps explain why Nvidia’s strong earnings report was able to trigger a broader rally across the market.

ETF Recommendations

1. SOXL

• Expense ratio: 0.75%

• Net assets: $19.96 billion

• 10-year annualized return: 46.9%

SOXL is a 3x leveraged ETF focused on the U.S. semiconductor industry. Its objective is to deliver approximately three times the daily performance of the NYSE Semiconductor Index.

Its underlying index includes major semiconductor and semiconductor-equipment companies such as Nvidia, Broadcom, Micron, AMD, Applied Materials, Marvell, Intel, and KLA.

As of the end of March 2026, roughly 76% of the index consisted of semiconductor companies, while around 24% was made up of semiconductor equipment and materials companies.$三倍做多半导体ETF-Direxion Daily(SOXL)$

2. SOXS

• Expense ratio: 1.00%

• Net assets: $1.32 billion

• 10-year annualized return: -100%

SOXS is a 3x inverse leveraged ETF for the semiconductor sector.

Like SOXL, SOXS is subject to significant daily rebalancing effects and volatility decay. As a result, it is generally more suitable as a short-term trading instrument rather than a long-term investment.

Direxion also explicitly states that investors should not expect SOXL or SOXS to deliver three times, or negative three times, the cumulative return of the underlying index over periods longer than one trading day.$三倍做空半导体ETF-Direxion Daily(SOXS)$

3. QQQ

• Expense ratio: 0.18%

• Net assets: $485.5 billion

• 10-year annualized return: 19.9%

QQQ tracks the Nasdaq-100 Index, which consists of approximately 100 of the largest non-financial companies listed on the Nasdaq.

Although QQQ is not technically a pure technology ETF, technology companies account for a very large portion of the portfolio.

Major holdings typically include companies such as Nvidia, Microsoft, Apple, Amazon, Meta, Broadcom, Alphabet, and Tesla.

In practice, buying QQQ gives investors broad exposure to large U.S. technology, AI, internet, semiconductor, and consumer-growth companies.

Founded in 1999, QQQ is one of the most established and actively traded Nasdaq-100 ETFs in the market.$纳指100ETF(QQQ)$

4. QQQM

• Expense ratio: 0.15%

• Net assets: $103.7 billion

• 10-year annualized return: 16.5%

QQQM can essentially be viewed as the lower-cost, long-term investment version of QQQ.

It also tracks the Nasdaq-100 Index, but charges a slightly lower expense ratio, making it particularly attractive to investors focused on long-term holding rather than frequent trading.$NASDAQ100指数ETF-Invesco(QQQM)$