Nvidia's 2025 Earnings Boom Drives Nasdaq and Semiconductor ETFs Higher at $1,044.88
Nvidia's stellar Q2 2025 earnings exceeded expectations, propelling its stock over 10% and lifting the Nasdaq 100, semiconductor ETFs, and allied tech stocks within its expanding AI ecosystem.
Highlights
- Nvidia’s Q2 2024 earnings surprise sparked a significant stock surge.
- The Nasdaq 100 climbed approximately 0.5%, buoyed by Nvidia’s 6.5% index weighting.
- Semiconductor ETFs like VanEck Semiconductor (SMH) and iShares Semiconductor (SOXX) rose sharply, driven by Nvidia’s heavy influence.
- Partners and customers linked to Nvidia, including Dell Technologies, also enjoyed gains.
- Other semiconductor firms rallied, benefiting from Nvidia’s AI-driven momentum.
Following a stronger-than-anticipated earnings report, Nvidia (NVDA) shares soared above $1,044.88 on June 2024 trading, marking over a 10% jump. This surge lifted the Nasdaq 100 and semiconductor ETFs heavily exposed to Nvidia, reflecting the chipmaker's dominant role in the AI sector.
Nasdaq 100 Powered by Nvidia's Market Cap Surge
The Nasdaq 100 index advanced around 0.5%, underpinned by Nvidia’s stock performance. Nvidia commands roughly 6.5% of the index's weight, ranking third after Microsoft and Apple. Its market capitalization rose from $2.3 trillion to over $2.5 trillion, potentially affecting future index weightings during rebalancing.
The broader S&P 500 also edged up 0.1%, with Nvidia comprising about 5.5% of the index.
Semiconductor ETFs Rally on Nvidia's Strength
ETFs focused on semiconductors and AI sectors saw notable gains, led by Nvidia’s influence. The VanEck Semiconductor ETF (SMH) climbed nearly 3%, while the iShares Semiconductor ETF (SOXX) gained close to 2%. Nvidia represents more than 20% of SMH and about 9% of SOXX, underscoring its sector leadership.
AI Ecosystem Partners Also Benefit
Stocks of companies collaborating with Nvidia, including Dell Technologies, surged as well. Dell shares rose nearly 7% following CEO Jensen Huang’s acknowledgment of their partnership during Nvidia’s earnings call. Dell recently expanded its AI production capabilities using Nvidia technology.
Other semiconductor companies like Micron Technology (MU) and Marvell Technology (MRVL) also posted gains, reflecting broader sector enthusiasm fueled by Nvidia’s success.
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