Nvidia’s Rally Ignites European Semiconductor ETFs

Nvidia stock hit another all-time high on Friday, closing above $158 and notching a weekly gain of over 10%. The U.S. chipmaker continues to dominate headlines and global capital flows as AI infrastructure spending accelerates and signs of a thaw in U.S.–China relations boost investor sentiment.

Much of Nvidia’s latest momentum came after U.S. Commerce Secretary Howard Lutnick said a trade deal between the U.S. and China had been finalized, potentially softening restrictions on exporting advanced AI chips. At the same time, Nvidia held an AI-focused developer summit in Europe, where it announced new initiatives with Deutsche Telekom and U.K. government partners to build AI-specific cloud infrastructure.

This flurry of news—including ongoing sovereign partnerships with Saudi Arabia and a reported pause in Israel–Iran tensions—has renewed confidence in AI’s global rollout. And as investor interest shifts back toward the semiconductor value chain, European-listed chip ETFs are emerging as key beneficiaries.

AI Spending Wave Keeps Nvidia in Focus

Nvidia’s rise isn’t just about market dominance. It’s being powered by unprecedented capital spending across the world’s largest tech firms. In the U.S., Amazon, Alphabet, and Meta have announced record data center capex to support their AI buildouts. Amazon’s spending jumped 75% year-over-year in Q1, while Alphabet reaffirmed a $75 billion investment plan.

These numbers are more than headlines—they translate into long-term demand for the hardware powering AI systems: GPUs, advanced memory chips, and specialized semiconductors for training and inference. Nvidia alone is on pace to ship 7 million AI GPUs in 2025.

The company’s international expansion has added further fuel. Its deals in Europe position it not just as a chipmaker, but as a central AI infrastructure partner. This geopolitical diversification also helps hedge against ongoing risks related to China exports, where the company faces multibillion-dollar write-downs due to recent U.S. policy shifts.

The rally in semiconductors is far from limited to U.S. and European names. Singapore, which now produces 1 in 10 chips globally and accounts for a fifth of global semiconductor equipment output, continues to attract billions in investments. While homegrown champions are still emerging, the city-state plays a strategic role in the supply chain—especially in advanced packaging and silicon photonics, technologies increasingly critical to future AI workloads.

ETF Winners: European Chip Funds Catch the AI Wave

With AI capex soaring and investor confidence returning, European semiconductor ETFs rallied strongly last week. Here’s how some of the top-performing funds tracked the momentum:

• Amundi MSCI Semiconductors UCITS ETF (CHIP) led the pack with a +5.63% weekly return.
• iShares MSCI Global Semiconductors UCITS ETF (SEMI) and HSBC Nasdaq Global Semiconductor UCITS ETF (HNSC) both posted gains of +4.99%.
• VanEck Semiconductor UCITS ETF (SMGB) followed closely with a +4.94% return.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.