Why Nvidia Stock Popped Again Today
What happened
After taking a short breather on Friday, shares of graphics and AI semiconductors specialist Nvidia (NASDAQ: NVDA) resumed their inexorable march higher on Monday, shooting up 2.4% through 10:40 a.m. EST.
You can thank Roundhill Investments for that.
Image source: Getty Images.
So what
Granted, you may not actually know who Roundhill Investments is -- the ETF sponsor isn't exactly a household name!
But no matter. What's important today is that Roundhill knows who Nvidia is, and in advertising its new "metaverse" offering this morning, Roundhill just named Nvidia the biggest position out of all its holdings in the new Roundhill Ball Metaverse ETF.
According to data from S&P Global Market Intelligence, this Metaverse ETF was established less than six months ago. It aims to give investors an easy way to do one-stop shopping for companies working to build the metaverse, which partner Ball Metaverse Research Partners describes as "a successor to the current internet" that "will transform our global economy and human society at large" -- and become "a multi-trillion dollar opportunity" for investors.
Now what
It's already turning out to be a pretty nice investment for Nvidia investors, inasmuch as Roundhill stated that Nvidia stock comprises 10.2% of the value of the new ETF. This suggests that the more popular Roundhill's new ETF becomes, the more money is going to get poured into Nvidia stock.
Looking ahead, you can anticipate that Microsoft, Roblox, Unity Software, and Meta Platforms itself -- i.e., Facebook -- might also benefit from the new metaverse ETF. According to Roundhill, these five companies make up a combined 35.1% of the value of the new fund.
The more Roundhill goes up, the more you can expect these stocks to rise as well.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Rich Smith owns shares of Roblox Corporation. The Motley Fool owns shares of and recommends Meta Platforms, Inc., Microsoft, Nvidia, Roblox Corporation, and Unity Software Inc. The Motley Fool has a disclosure policy.
