1 Super Semiconductor ETF That Could Turn $400 Per Month Into $1 Million, With Nvidia's Help

Nvidia (NASDAQ: NVDA) pioneered the graphics processing unit (GPU) in 1999 to render computer graphics for gaming and multimedia purposes.

Since GPUs are capable of parallel processing -- meaning they can seamlessly perform multiple tasks at the same time -- they are also ideal for compute-intensive workloads like machine learning and artificial intelligence (AI) development. That led Nvidia to design new GPU architectures for data centers, and the semiconductor industry is now at the heart of the AI revolution.

Nvidia CEO Jensen Huang believes data center operators will spend $1 trillion building GPU-based AI infrastructure over the next five years. That's an incredible financial opportunity, not only for his company, but for the entire semiconductor industry.

The iShares Semiconductor ETF (NASDAQ: SOXX) holds every leading chip stock, so it can give investors exposure to that trend in a diversified way. In fact, here's how the exchange-traded fund (ETF) could turn $400 per month into $1 million over the long term.

The iShares Semiconductor ETF invests in U.S. companies that design, manufacture, and distribute chips -- especially those poised to benefit from powerful trends like AI. Although ETFs can hold hundreds or even thousands of different stocks, the iShares Semiconductor ETF holds just 30, so it's highly concentrated toward its singular theme.

Led by Nvidia, its top five holdings represent 37.9% of the entire value of its portfolio.

Data source: iShares. Portfolio weightings are accurate as of Oct. 14, 2024, and are subject to change.

Nvidia was valued at $360 billion at the start of 2023. Less than two years later, it's now the second largest company in the world, with a market capitalization of $3.2 trillion. The chip giant is delivering the revenue and earnings growth to support its incredible rise in value, thanks primarily to sales of its data center GPUs.

In the recent fiscal 2025 second quarter (ended July 28), Nvidia generated $26.3 billion in data center revenue, which was a whopping 154% increase from the year-ago period. The strong results are likely to continue, because the company is about to start shipping a new generation of GPUs based on its Blackwell architecture. Blackwell GPUs promise an incredible leap in performance of up to 30 times compared to Nvidia's flagship H100 GPU, and Huang recently said demand for them is "insane."