NVDA, TSLA Turbocharge QQQ Surge Toward Best Month Since 2023

The Invesco QQQ Trust QQQ, an ETF that mirrors the tech-heavy Nasdaq 100 index, is charging through May like it had a triple shot of AI-fueled espresso, with two old friends to thank: Nvidia NVDA and Tesla TSLA.

With only one trading day remaining in the month, QQQ has gained almost 10%, and is set to post its strongest monthly performance since 2023. The surge has been powered by Nvidia’s solid earnings and Tesla’s resurgence.

Nvidia, QQQ’s second-largest position, got the ball rolling with fiscal Q1 results that did not disappoint. The chip giant reported adjusted EPS of $0.96 and revenue of $44.1 billion. The shares surged 4.5% after hours on Wednesday, pulling QQQ 0.6% higher. On Thursday, NVDA is up 4.04% and QQQ, 0.4% as of 1 p.m ET.

Also Read: Nvidia Stock Has ‘Significant Upside’ As AI ‘Godfather’ Jensen Huang Delivers Another ‘Robust Quarter’

Although Q2 revenue guidance was a bit short of the mark at $45 billion, factoring in a potential $8 billion decline from continued U.S. export bans on its H20 chips in China, Nvidia’s data center division, the jewel of its AI crown, brought in a whopping $39.1 billion, with solid demand in evidence.

Meanwhile, Tesla has accelerated its way back into investors’ favor. Stock is up almost 24% for May, the strongest month since November 2024 for the EV manufacturer. QQQ, whose top 10 holdings include Tesla, is obviously riding the momentum.

The reversal comes as Elon Musk completes his time with the Department of Government Efficiency (DOGE). Investors welcomed Musk’s renewed emphasis on Tesla’s AI and full self-driving prospects, and Wedbush’s Dan Ives hailed Tesla as the “most undervalued AI play” on the market.

ETF Ecosystem: Nvidia And Tesla Everywhere

Nvidia isn’t just juicing QQQ; it’s ubiquitous. According to Etf.com, over 625 U.S.-listed ETFs own NVDA stock. Among those ETFs is the VanEck Semiconductor ETF SMH, which carries a substantial 21% weightage. That ETF also benefited from Nvidia’s earnings day.

Tesla’s resurgence, though less pervasive in ETF land, is proving to have a significant impact for QQQ due to its large-cap weighting and effect on the Nasdaq 100’s performance.

Bottom Line: QQQ’s High-Octane May

With AI darlings and EV titans firing on full cylinders, QQQ is racing towards a record May close. Nvidia’s earnings momentum and Tesla’s narrative reversal have made the ideal cocktail of tech optimism.

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