In South Korea, an Exchange Traded Fund (ETF) that predominantly includes Broadcom and Nvidia has provided nearly a 20% return rate in just one month.
According to the Korea Exchange on the 20th, the recent one-month return rate (as of the 19th) of SOL US AI Semiconductor Chipmaker was recorded at 19.59%. This fund includes Broadcom at 17.90%, the highest in the country. Nvidia is included at 26.21%, and the two stocks combined exceed 44%.
The stock prices of these items rose by 46.61% and 29.19%, respectively, during this period.
Listed last April, this ETF focuses on investing in chipmaker companies like Nvidia, AMD, and Broadcom, which design essential GPUs, NPUs, and CPUs for AI operation in the non-memory semiconductor market. It consists of 10 stocks.
Park Soo Min, the head of the ETF Product Strategy Team at Shinhan Asset Management, explained, “Broadcom’s performance report was more than enough to meet market expectations, just like Nvidia. The stock split event also provided an opportunity to resolve its undervaluation significantly,” and “Broadcom will establish itself as Nvidia’s strongest competitor as a semiconductor design partner for big tech companies.”
Broadcom’s Q2 and Q4 results, announced on the 13th, increased by 43% compared to the same period last year. The annual sales guidance was also revised upward from $50 billion to $51 billion. Broadcom is praised for its consistent efforts in shareholder return, such as the stock split.
Park pointed out, “While Nvidia is demonstrating strong leadership, chipmaker companies like Broadcom, Qualcomm Incorporated, and AMD will make greater earnings as the AI semiconductor market grows.”
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