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Why is NVDY Up Today After Nvidia Investments

The YieldMax NVDA Option Income Strategy ETF (NVDY) closed up 2.36% at $23.90 on January 2, 2025, as Nvidia's stock surged 3.20% to $138.59, driven by bullish sentiment and strategic developments. Nvidia's recent $1 billion investment in AI companies and its acquisition of Run:ai for $700 million have bolstered investor confidence, reflecting the company's commitment to maintaining its leadership in the AI sector. Analysts from Bank of America and Morgan Stanley have reiterated their buy ratings, with price targets suggesting significant upside potential. Additionally, Nvidia's plans to establish a second headquarters in Taiwan and its ongoing expansion in AI chip manufacturing underscore its growth trajectory. The semiconductor index, SOX, also rose by 0.83%, indicating broader strength in the sector.