Nvidia (NVDA) earnings are now a thing of the past with markets having effectively digested another stellar quarter from the largest company by market capitalization.
Overall, it’s safe to say that the reaction to the semiconductor giant’s latest quarterly update was muted, but that doesn’t mean the bellwether stock will be quiet in the coming months. That’s unlikely. Likewise, there’s still reasons for active traders to keep an eye on the Direxion Daily NVDA Bull 2X Shares (NVDU ), which attempts to deliver 200% of the daily returns of the chip behemoth.
As Ryan Lee, senior vice president of product and strategy at Direxion, points out, some other semiconductor stocks may be more “darlings” today than Nvidia is, but there’s no getting around the fact that Nvidia is a market-mover. Alone, that status indicates NVDU could be an ETF for short-term traders to keep on their screens.
See more: Nvidia Cements Its Quality Characteristics After Q1 Earnings Beat
NVDU Still Has Catalysts
Earnings reports make for the ideal times to trade geared ETFs such as NVDU. However, there are also likely to be plenty of non-earnings occasions over the remainder of 2026 during which NVDU could be useful to agile traders. Any updates regarding the US/China trade relationship stand as an example.
“If the importance of Nvidia was ever in doubt, the President stopping Air Force One in Alaska for Jensen to join the US-China summit reaffirmed that the chip leader remains at the forefront of not just the AI trade, but the broader geopolitical landscape,” noted Lee. “Any H200 sales to China should be purely additive, and the US-China summit potentially opening the China floodgates for NVDA could provide the catalyst needed to bring the chip giant another leg higher, though it continues to exclude this from next quarter’s forecast.”
As Jake Behan, head of capital markets at Direxion, explained, Nvidia margins remain impressive, though markets seem to be demanding perfection on that front. If investors can reconcile that impressive margin growth is good enough, NVDU could gain more catalysts in the months ahead.
“Margins holding around 75% despite higher costs signal that Nvidia still has pricing power, with the Blackwell ramp helping offset rising inputs and support profitability even before the Vera Rubin platform cycle kicks in,” said Behan.
Bottom line: Nvidia is still the stock investors look to when it comes to gauging the artificial intelligence (AI) trade and that status is enough to make NVDU one of the marquee leveraged ETFs.
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