With the Consumer Electronics Show (CES) taking place in Las Vegas, investors’ eyes are on Nvidia (NVDA). A predictable response, but one that underscores the importance of the semiconductor behemoth in the artificial intelligence (AI) space.
In terms of bullish CES chatter, Nvidia is obliging and that’s good news for ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), both of which allocate 9.06% to that stock, making Nvidia their largest holding.
At the conference, Nvidia has noted it has the supply to meet robust H200 chip demand from China. CEO Jensen Huang’s keynote address also included details on the company’s autonomous driving technology.
“We are introducing Alpamayo, the world’s first thinking model for autonomous driving,” Huang said. “Not only does your car drive as you would expect it to drive, but it reasons out any situation it could come upon. This is the first large-scale physical AI market. We can all agree it is fully here. In the next 10 years I’m fairly certain a large percentage of the world’s cars will be autonomous.”
Analysts Love Nvidia
The largest QQQ/QQQM holding closed Tuesday with a market capitalization of $4.57 trillion – the largest in the world. On the surface, that size implies limited upside from here, especially given the stock’s torrid pace in recent years, but the good news for QQQ/QQQM investors is that Wall Street has plenty more share price appreciation ahead of it.
“We remain constructive on AI related semi, memory and semicap stocks despite expected volatility,” opined Bank of America analysts in a recent client note. “This week’s CES trade show could add new growth vectors in physical (robotics) and edge AI (on-device) alongside ongoing cloud build out.”
The analysts also had constructive comments on Broadcom (AVGO) and Advanced Micro Devices (AMD), both of which are QQQ/QQQM holdings. Evercore’s Mark Lipacis, one of Wall Street’s top chip analysts, was also impressed with what Nvidia has had to say at CES.
“We believe commentary reinforced our view that NVDA is positioned as the ecosystem of choice for the Tectonic Shift to Parallel Processing which should enable it to capture 70%-80% of the value created due to its general-purpose, flexible ecosystem which allows it to offer the lowest cost of ownership as AI models continue to evolve,” observed the analyst.
Bottom line: 2026 is young, but there’s already enthusiasm for Nvidia shares and that could be to the benefit of QQQ and QQQM as the year unfolds.
Originally published on ETF Trends
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