NVDD ETF

Semiconductor stocks continue to rally and will continue to do so as long as the artificial intelligence (AI) and data center themes stay hot. So far, it appears that trend could persist for some time.

Typically, the response to a market downturn is to wait for the red ink to subside, then to pick up the discount. However, there's another way to play bearish cycles and that is to consider exchange-traded funds that profit on downcycles.

Chief technology officers appear to share one thing in common when it comes to developing their IT budgets for the year — more artificial intelligence. This could add additional fuel to the already-hot AI theme and push AI-focused ETFs even higher.

Nvidia's stock has nothing but tailwinds blowing behind it and could keep on pushing higher. Leveraged ETFs with a stake in Nvidia are feeling the full weight of the growth potential AI brings.

If the artificial intelligence (AI) theme remains hot heading into 2024, this could help push the Direxion Daily NVDA Bull 1.5X Shares (NVDU) even higher in the new year as the chipmaker expands its market share.

Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods.