FILE PHOTO: A view of a Nvidia logo at their headquarters in Taipei, Taiwan May 31, 2023. REUTERS/Ann Wang/File PhotoNEW YORK : Investors' fervor for all things AI-related is leaving its mark on the U.S. options market, as traders pile in to derivatives bets to gain exposure to the red-hot investing theme.
Nvidia briefly hit $2 trillion in market value for the first time on Friday - two days after it released quarterly earnings - riding on insatiable demand for its chips which feature prominently in the generative AI craze. Nvidia's options should remain popular with traders,"both from a hype and mechanical index perspective," said Garrett DeSimone, head of quantitative research at OptionMetrics."It represents such a large portion of S&P 500 weighting."
Though the frantic pace of trading in Nvidia’s options could ease now that its earnings report is in the rearview mirror, market participants said the AI theme was likely to remain popular among investors.