Evercore ISI is bullish on QQQ and SMH, thanks in large part to shares of Nvidia

Evercore ISI argued that the Nasdaq-100 focused exchange-traded fund, Invesco QQQ Trust (NASDAQ:QQQ), and popular chip focused ETF, VanEck Semiconductor ETF (NASDAQ:SMH), have more room to run as both are strongly supported by magnificent seven giant Nvidia (NASDAQ:NVDA).

Regarding QQQ, Evercore ISI said that it has a price target for the world’s fifth-largest ETF by assets under management at $570, as its “UniQQQuely bullish ‘failed’ head and shoulders.” Currently, shares of QQQ trade near $497 and a potential move to $570 would signify a roughly 14.7% upside.

Looking at SMH, the investment institution stated, “Buy Moore” and put a price target of $300 on the exchange-traded fund, which trades above its 50-, 100-, and 200-day moving averages. Presently, SMH hovers near $261 a share and a topside call of $300 would signify a potential upside of 14.8%.

Moreover, both QQQ and SMH have been fueled in large part by Nvidia (NVDA) as SMH lists NVDA as its top holding with a portfolio allocation of 20.9% while QQQ classifies NVDA as its second-largest holding at 8.32%.

Evercore ISI says NVDA is “the straw that stirs the drink,” and believes the mega-cap can run up to $200 a share from its current $138 a share price. A move to $200 would provide investors with a 46.6% return from NVDA’s current price.

Year-to-date price action: QQQ +21.5%, SMH +49.1%, and NVDA +178.8%.