Investors Are Flooding Into the GraniteShares 2X Long NVIDIA Leveraged ETF Ahead of the GTC Conference Next Week

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In one of the best illustrations of the buy-the-dip mentality so far this year, investors are flocking to a leveraged long-only ETF to generate outsized gains on the back of the recent weakness in NVIDIA shares and in anticipation of the GPU manufacturer’s upcoming GTC Conference. This funding influx serves as an emblem of sorts to the uber-bullish sentiment that still persists around NVIDIA shares despite transitory weakness.

As we noted recently, NVIDIA performed a 10 percent intra-day round-trip on Friday amid heightened call option monetization and profit-taking activity, eventually losing around 84 percent of Uber’s market cap. At the time of writing, the stock is still down around 10 percent relative to its all-time high of $974 per share.

Yet, savvy investors appear to be viewing this current bout of weakness in NVIDIA shares as a buying opportunity. Consider the fact that the Granite Shares 2x Long NVIDIA leveraged ETF, which aims to post 2x the gains and losses on the underlying stock, attracted over half a billion dollars in inflows on the 11th of March alone! According to Bianco Research’s Jim Bianco, this is “mania-type behavior.”

Separately, Vanda Research recently pointed out that retail investors are now rotating out of Tesla and into NVIDIA. Interestingly, the GPU maker still has a long way to go to match the retail investors’ peak Tesla holding level.

Meanwhile, NVIDIA investors remain fixated on next week when the GPU manufacturer hosts its much-anticipated GTC Conference. This will be the company’s first such live event in five years, with investors eager to hear NVIDIA’s CEO, Jensen Huang, offer additional insights into the ongoing demand boom for AI accelerators. According to Cantor Fitzgerald, with generative AI at a tipping point across countries, industries, and nations, the “transformation potential is incredible”.

On a similarly optimistic note, Wedbush’s Dan Ives continues to maintain that for every $1 spent on NVIDIA’s AI-focused chips, the broader tech sector is expected to see between $10 and $12 in additional spending as the “2nd/3rd/4th derivatives of the AI Revolution” plays out.

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