Nvidia Sparks Surge in AI-Linked Leveraged ETFs as Investors Chase AI Revolution

Nvidia's earnings beat has ignited a frenzy for high-risk Leveraged ETFs tied to artificial intelligence, with Wall Street piling into funds that amplify daily swings of AI-exposed stocks. The chipmaker's record-breaking rally has turned its shares into a speculative playground, attracting both opportunity and peril.

Over 100 new single-stock leveraged and inverse ETFs launched in the U.S. during 2025's first five months, dwarfing 2024's total. AI-themed products now command 75% of the $23.7 billion leveraged ETF market, with Nvidia, Tesla, and Palantir driving investor obsession.

The $17.7 billion flooding into AI-linked leveraged products underscores a market betting big on the technology's disruptive potential. These instruments—using derivatives to deliver double or triple daily moves—are rewriting the rules of thematic investing while testing risk appetites.