This famous company just reached an all-time high in the stock market. Why it could continue to dominate

Nvidia’s stocks soared to an all-time high recently, and according to VanEck CEO Jan van Eck, the company may still have a lot more potential for growth. Van Eck, whose firm manages the largest U.S. semi exchange-traded fund, points to Nvidia’s advantage as a first mover in the race to create artificial intelligence chips that could improve the performance of stocks, including Nvidia’s. “These companies have significant competitive advantages, almost like monopolies,” he told CNBC’s “ETF Edge” on Monday. Nvidia’s stock has risen by 216% over the past year and by 41% since the start of this year, as of the market close on Wednesday. “Who competes against Nvidia for GPUs [graphics processing units]?” he asked. “They have significant pricing power and possess AI capabilities.” Nvidia is the top holding of the VanEck Semiconductor ETF, which tracks 25 of the largest semiconductor companies weighted by market cap. According to FactSet, Nvidia accounts for almost a quarter of the fund’s assets. “Nvidia’s lead is so significant,” van Eck commented. “The return on equity is substantial.” He suggests that as more competitors enter the AI GPU space, Nvidia’s more advanced capabilities could reinforce the company’s current position as the most valuable semiconductor stock. “They are trying to strengthen their position by introducing software services, and now they are developing a cloud solution,” van Eck said. “But who can really challenge them?” As of Wednesday, the top holdings of the VanEck Semiconductor ETF are Nvidia, Taiwan Semiconductor, and Broadcom. The ETF has risen by more than 12% this year.
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Author: OpenAI