Nvidia could remain the semiconductor market leader: CEO VanEck

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Nvidia shares hit an all-time high on Wednesday, and its gains could still be in the early reports, according to VanEck CEO Jan van Eck.

Van Eck, whose company runs the largest US semi-traded fund, points to a first mover in the race to make artificial intelligence chips that could strengthen the performance of stocks including Nvidia.

“It’s just that these companies have huge competitive advantages, almost quasi-monopolies,” he told CNBC’s “ETF Edge” on Monday.

Nvidia is up 216% over the past year and 41% since January 1, as of Wednesday’s close.

“Who will compete against Nvidia for GPUs [graphics processing units]?” he questioned. “They have good price power. They have AI.”

Nvidia is the VanEck Semiconductor ETF stock price history‘high ownership. The fund tracks 25 of the largest semiconductor companies weighted by market cap. According to FactSet, Nvidia makes up nearly a quarter of the fund’s assets.

“[Nvidia’s] the lead is so big,” said van Eck. “The return on equity is huge.”

He suggests that as more competitors enter the AI ​​GPU space, Nvidia’s more advanced capabilities could trump the company’s current status as the most valuable semiconductor stock.

“They’re trying to build their moat with software services now, and now they’re building a cloud solution,” van Eck said. “But who can compete with them?”

The smallest stock was the VanEck Semiconductor ETF Nvidia, Taiwan Semiconductor and Broadcom. The ETF is up more than 12% this year.

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