This top-performing ETF's largest three stock holdings are Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom.

That sets the table for continued growth over the coming years. Analysts estimate that Nvidia will grow earnings by an average of 38% annually for the next three to five years. Today, Nvidia trades at a forward P/E ratio of 51, a rock-solid value for its anticipated growth.

The artificial intelligence (AI) trend has given big boosts to the share prices of Nvidia ( NVDA -3.00%) and Taiwan Semiconductor Manufacturing ( TSM 0.60%) over the past year. The two chipmakers' stocks rose by 204% and 121%, respectively, during the period, crushing the 35% gains recorded by the PHLX Semiconductor Sector index.

Artificial intelligence (AI) is moving rapidly with the evolution of generative AI and large language models. One company that has leveraged AI to enhance shopping and customer experience is Klarna, the Swedish buy now,

Nvidia's recent stock returns have been nothing short of phenomenal. As AI drives the need for more computing power, quarterly revenue increased by over 1,000% since 2020. Much of that came in the last two years as large tech companies spent heavily to build out data centers needed for AI applications.