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Tesla vs. Nvidia: ETFs Show Winners and Losers in Latest Stock Battle

Daniel Kim Views  

Nvidia, a global leader in AI semiconductors, and Tesla, a global leader in rechargeable batteries, have shown divergent stock price trends, leading to mixed results for ETFs holding these stocks. 

According to the Korea Exchange, the ETF with the highest return in the domestic market over the past month (June 5 to July 5) was ACE Tesla Value Chain Active, with a return rate of 28.37%. 

During the same period, TIGER Tesla Bond Mixed Fn (13.36%) and KODEX Tesla Value Chain FactSet (10.33%), which hold more than 20% of Tesla, also recorded high returns.

In the past week (July 1-5), these ETFs continued to rank high in returns. ACE Tesla Value Chain Active (20.43%) retook the top spot, followed by TIGER Tesla Bond Mixed Fn (3rd place, 8.46%) and KODEX Tesla Value Chain FactSet (7th place, 8.00%).

On the other hand, ETFs holding Nvidia, which had captured retail investors’ interest in the global stock market this year, did not rank high in returns.

Recent one-month returns for AI semiconductor-related ETFs holding Nvidia ranged from 9.00% to 13.29%, while weekly returns ranged from 0.03% to 3.13%. For example, the highest-performing KODEX US Semiconductor MV had less than half the return of KODEX Tesla Value Chain FactSet.

This discrepancy is due to the recent divergent stock price trends of Nvidia and Tesla. Nvidia, which has fluctuated since last month, plunged 12.88% over three trading days from June 20 to 24, freezing investor sentiment. Although it has somewhat recovered, it continues to fluctuate.

With Tesla’s rebound, retail investors’ rankings for overseas stock holdings have also changed. As of July 4, according to the Korea Securities Depository, Tesla was the top stock held by domestic investors, with $14.7 billion.

Nvidia, which had overtaken Tesla in June, was pushed back to second place as of July 2. As of July 4, domestic investors held $13.4 billion in Nvidia stocks.

Park Yoon Chul, a researcher at Hi Investment & Securities, explained, “As the AI momentum peaked, Tesla started rising as an alternative to Nvidia,” adding, “Tesla rebounded about 73.5% after hitting a low at the end of April, regaining the top spot for overseas stocks held by retail investors.”

However, regarding long-term returns, Nvidia’s investment products outperform Tesla-related products. Considering AI’s long-term growth potential, the future outlook remains positive.

The 6-month and 1-year returns for KODEX US Semiconductor MV were 70.97% and 86.98%, respectively, while ACE Global Semiconductor TOP4 Plus SOLACTIVE recorded 72.89% and 83.11%, respectively.

These returns significantly differ from ACE Tesla Value Chain Active, which had 6-month and 1-year returns of 16.29% and -5.51%, respectively.

Despite these excellent long-term returns, the industry maintains a positive outlook for Nvidia. Considering that the AI industry is still in its early growth stages globally, the long-term growth potential of AI semiconductor-related stocks, including Nvidia, is expected to be more promising than other sectors.

An industry insider highlighted that the recent declines in Nvidia and other tech stocks are mainly due to profit-taking activities. The insider added that the market’s perception of AI technology remains positive, positioning Nvidia as a confident investment that promises both growth and stability.

Daniel Kim
content@viewusglobal.com

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