Nvidia's Earnings Roared Higher. Here's 1 Top Artificial Intelligence ETF to Buy Now

The moment everyone had been waiting for happened last week: Nvidia (NASDAQ: NVDA), the world's top artificial intelligence (AI) chip designer, reported earnings. And, importantly, the company continued its quarter-after-quarter trend of delivering earnings that beat analysts' expectations and spoke of ongoing high demand.

This is a great sign for Nvidia as well as the overall AI industry, and here's why. Nvidia, as the chip leader, has become a bellwether for all of the tech players involved. If Nvidia benefits from demand, so will many others, such as the cloud service providers that offer Nvidia chips and other related products. And rival chipmakers may benefit too, as this high demand for chips has prompted big customers to invest in a variety of chips, not only those from Nvidia.

For investors, Nvidia makes a great buy right now, especially since the stock price and valuation have slipped, offering you a solid entry point. But that purchase isn't the only way to benefit from Nvidia's earnings momentum. Let's check out this top AI exchange-traded fund (ETF) that will also do the job.

Image source: Getty Images.

Investing in many stocks

Before we get started, I'll take a quick moment to talk about ETF investing -- and why it could be a fantastic addition to your overall investment strategy. ETFs include a number of stocks that have one major thing in common: They are either involved in the same industry or are members of a particular index, such as the S&P 500, for example.

This allows you to bet on an index or theme -- such as AI, in the case we'll talk about -- and gain exposure to a number of companies. ETFs shouldn't replace stock picking, but they are very complementary, allowing you to deepen your investment in a certain area and add diversification to your portfolio. (I'm a big fan of diversification because, when one stock or industry struggles, others may continue to rise and therefore compensate.) ETFs trade daily on the market, so you can easily buy and sell them as you would a stock.

Now, let's consider the top AI ETF to buy in order to benefit from Nvidia's strengths. And this is the Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES), a fund built to benefit from every stage of the AI spending cycle.

The name of this fund may sound familiar to you, as it is based on the investing strategy and stock picks of Wedbush managing director Dan Ives. He follows technology stocks and is often seen on social media and across traditional media speaking about his favorite companies.

Nvidia and its partners

Nvidia is the fifth-largest position in the ETF, and other major holdings in the fund are closely linked to Nvidia's success. For example, top holding Taiwan Semiconductor Manufacturing produces Nvidia's chips, and No. 2 holding, Amazon, is a major Nvidia customer. So investing in this fund is a great way to bet on the dominant chip designer, as you can benefit directly from its gains as well as from the wins of its close partners.

This ETF also broadens your potential for an AI victory, as it includes a variety of AI themes, from cybersecurity to the power needed to fuel AI.

Now, you might wonder why we should be so optimistic about Nvidia. In just a few words, Wedbush summarizes it:

"Nvidia remains the anchor for compute," Wedbush wrote in the recent fund update.

A look at Nvidia's latest earnings report supports this comment. The AI leader spoke of ongoing high demand and reported record revenue for the quarter and year. Profit was also high, as the company maintained a mid-70% gross margin.

And with Nvidia's annual releases of updated chips -- next up is Rubin later this year -- there's always a catalyst on the horizon.

All of this means now is a great time to get in on the Ives ETF and benefit as this AI success story continues into its next chapters.

Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.