Shinhan Asset Management "NVIDIA Surpasses $1000... Spotlight on 'SOL US AI Semiconductor Chip Maker'"

Shinhan Asset Management announced on the 23rd that the ‘SOL US AI Semiconductor Chipmaker Exchange-Traded Fund (ETF)’, which has the highest weighting of Nvidia in its portfolio, is gaining attention.

Listed on the Korea Exchange on April 16, the SOL US AI Semiconductor Chipmaker ETF is a product that allows focused investment in chipmaker companies designing essential components for artificial intelligence (AI) operation, such as GPUs, NPUs, and CPUs. It consists of a total of 10 stocks, including Nvidia, AMD, Intel, Broadcom, and Qualcomm.

The ETF has shown steady performance since its listing, with a one-month return reaching 14.67%. Nvidia and AMD, the top holdings in the portfolio, rose 19.96% and 10.78% respectively during the same period, significantly contributing to the ETF’s returns.

Park Soo-min, head of the ETF Product Strategy Team at Shinhan Asset Management, said, “Nvidia announced earnings that exceeded the market’s high expectations, providing an opportunity to reinforce the overall direction of the semiconductor industry once again. Nvidia’s revenue, earnings per share, and Q2 guidance all surpassed consensus estimates.”

Nvidia posted strong first-quarter results. Revenue reached $26.04 billion, a 262% surge compared to $7.19 billion in the same period last year, significantly beating Wall Street’s estimate of $24.65 billion. Earnings per share (EPS) also soared to $6.12, 4.5 times higher than $1.09 in the previous year’s quarter, far exceeding the forecast of $5.59. The stock closed down about 0.5% in regular trading but surged more than 5% in after-hours trading, surpassing $1,000.

Park explained, “Nvidia’s data center segment, which includes AI chips, recorded first-quarter revenue of $22.6 billion, a 427% increase from the same period last year. The next-generation AI chip, Blackwell, is set to be officially launched in the second half of this year, and there is abundant preliminary demand from global companies such as Amazon, Google, Microsoft, and OpenAI.”

If non-memory semiconductors, which interpret, compute, and process data, are the core of AI semiconductors, the hegemony of the non-memory semiconductor value chain is held by a few chipmaker companies possessing the fundamental technology of chip design. Nvidia, which controls more than 80% of the AI chip market, is showing dramatic growth as companies across all industries adopt generative AI.

Park emphasized, “Rather than being swayed by short-term stock price volatility of individual stocks like Nvidia, it is important to consistently focus on semiconductor chipmaker companies at the center of the massive upstream AI industry and its trends. Since individual stocks cannot be included in pension accounts, it is necessary to utilize ETFs from a long-term investment perspective.”

This content was produced with the assistance of AI translation services.