AI Boom Fuels Surge in Leveraged Single-Stock ETFs as Nvidia Earnings Test Investor Frenzy
AI hype has fueled a surge in leveraged single-stock ETFs in the U.S., with 112 launched so far in 2025 versus 38 in all of 2024. Over half of the 190 listed products now track AI-linked companies like Nvidia, Tesla, Palantir, and energy firms powering data centers, accounting for $17.7B of the $23.7B invested in this ETF segment. The GraniteShares 2x Long NVDA ETF alone has grown to $4.56B. While these funds attract retail speculators seeking amplified AI exposure, analysts warn of extreme volatility, especially around earnings, and caution that the market is becoming overcrowded. Despite risks, issuers continue to roll out new products, drawn by higher fees and investor demand.