Nvidia's earnings release is front and center this week as the beloved chipmaker should determine the short-term direction of U.S. equities. Led by the $2.3 trillion behemoth Nvidia (NVDA) , semiconductors have been on fire in 2024 after a dramatic outperformance in 2023. I want to implement a hedge using the popular VanEck Semiconductor ETF (SMH) which has a near 21% weighting to Nvidia. The largest ETF to hold NVDA is the SPDR S & P 500 ETF Trust (SPY) , with a 5.1% allocation or about $28 billion in market value. It can (and has) propel NVDA higher in a faster manner, but it also can amplify a move lower (if that is possible for the AI darling, NVDA).

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Persons: NVDA SMH Organizations: Nvidia, VanEck Semiconductor, Trust