Continued AI Momentum in 2024 Could Push Nvidia Higher

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.

While the overall tech sector has been seeing strength in 2023’s comeback, one of its shining stars and possibly the shiniest star has been AI. The S&P Kensho Artificial Intelligence Enablers & Adopters Index is up over 50% for the year while the broad-based S&P 500 is up around 20%, highlighting the investor interest in AI companies in 2023.

The growth of AI is only going to continue expanding in the new year, creating more bullish opportunities in NVDU. That growth could be felt by the everyday consumer as AI plays a bigger role in daily activities.

“2024 is going to be the year when it really explodes, because every day people are going to use [AI],” TECHnalysis president Bob O’Donnell told Yahoo Finance.

Export Curbs Benefiting Bears?

There’s always a bearish side to every trade, including AI. With the United States and China both ramping its efforts to bolster its AI technology, the former is making sure that its own chipmakers aren’t giving the competition what it needs to take the top spot.

Per a CNN report, Nvidia is working with the federal government to ensure that chips made specifically for the Chinese market align with export curbs. This could create an interesting scenario in which Nvidia, who commands a majority of AI chip market share in China, could essentially lose market share to other competitors.