Why the dominance of this semi-name stock in the market could continue.

On Wednesday, shares hit a new record high, and their gains may still be in the early stages, says VanEck CEO Jan van Eck.

The largest U.S. semi exchange-traded fund firm, Van Eck, highlights the advantage of being the first mover in the race to produce artificial intelligence chips that can enhance the performance of stocks such as Nvidia.

He stated on CNBC's "ETF Edge" on Monday that these companies possess significant competitive advantages, almost resembling monopolies.

As of Wednesday's close, Nvidia has experienced a 216% increase in value over the past year and a 41% rise since January 1st.

What companies compete with Nvidia for GPUs?" he inquired. "They possess strong pricing power and AI capabilities.

Nvidia is the largest holding in the fund, which tracks the 25 largest semiconductor companies based on market cap. According to FactSet, Nvidia makes up almost a quarter of the fund's assets.

The return on equity is immense due to Nvidia's substantial lead, according to van Eck.

As more competitors enter the AI GPU market, Nvidia's advanced capabilities could help maintain its position as the most valuable semiconductor stock.

"Now that they have software services and are building a cloud solution, it's difficult for anyone to compete with them," van Eck remarked.

As of Wednesday, the top holdings of the VanEck Semiconductor ETF are and . The ETF has experienced a growth of over 12% this year.