Yahoo Finance Nvidia ETFs Look Strong Ahead of Q1 Earnings
Graphics chipmaker Nvidia NVDA is set to release first-quarter fiscal 2024 results on May 24, after market close. Nvidia stock has more than doubled in value this year, rising about 114%. This is much higher than the industry average of 43.7%.
The outperformance is expected to continue if the chipmaker comes up with an earnings beat in its Q1 report. Additionally, Wall Street analysts have turned more bullish ahead of the chipmaker’s quarterly earnings report. Given this, ETFs having the largest allocation to Nvidia could make compelling plays ahead of its earnings report. These include AXS Esoterica NextG Economy ETF WUGI, Pacer Data and Digital Revolution ETF TRFK, VanEck Vectors Semiconductor ETF SMH, The Spear Alpha ETF SPRX and Global X Robotics & Artificial Intelligence ETF BOTZ.
Earnings Whispers
Nvidia currently has a Zacks Rank #3 (Hold) and an Earnings ESP of +2.43%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
This videogame-gear specialist saw no earnings estimate revision over the past 30 days for the first quarter of fiscal 2024. Nvidia’s earnings surprise history is not impressive. It delivered a negative earnings surprise of 3.20%, on average, in the last four quarters. Nvidia is expected to post earnings and revenue decline of 32.3% and 21.5%, respectively, for the to-be-reported quarter.
The Zacks Consensus Estimate for the average target price is $279.19, with nearly 81% of the analysts giving a Strong Buy or a Buy rating ahead of NVDA earnings.
What’s Hot?
The chipmaker is at the center of the Artificial Intelligence (AI) feeding frenzy, which is making Wall Street bullish on the semiconductor specialist ahead of its earnings. The couple of the analysts — Oppenheimer and Susquehanna — raised the price targets for the stock. Analysts are optimistic about Nvidia AI-geared graphics processing units.
Per the yahoo finance article, hedge funds have increased exposure to NVDA as the chipmaker continues to win large-volume orders for its AI chips and growing GPU order momentum in the gaming market (read: Guide to Artificial Intelligence ETFs).
For the first quarter of fiscal 2024, the graphics chipmaker expects revenues of around $6.5 billion, plus or minus 2%. Nvidia believes demand for its artificial intelligence and data-center chips will remain strong though it continues to struggle with a slowdown in the personal computer market.
ETFs in Focus
Let’s delve into each ETF below:
AXS Esoterica NextG Economy ETF (WUGI)
AXS Esoterica NextG Economy ETF is an actively managed ETF that invests in stocks of companies that benefit from the ever-evolving digital economy. It holds 29 stocks in the basket, with Nvidia occupying the top position at 14.4%. AXS Esoterica NextG Economy ETF has key holdings in electronic compo-semiconductor, computer software and applications software.
AXS Esoterica NextG Economy ETF has accumulated $18.2 million in its asset base and charges 75 bps in fees per year. It trades in an average daily volume of 2,000 shares.
Pacer Data and Digital Revolution ETF (TRFK)
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 80 stocks in its basket. Out of these, Nvidia is the top firm, accounting for a 10.5% share. Semiconductors take the largest share at 33.7%, while communication equipment and system software round off the next two spots.
Pacer Data and Digital Revolution ETF debuted in June last year and has accumulated $1.1 million in its asset base. It has an expense ratio of 0.60%. TRFK trades in a meager volume of under 1000 shares per day on average.
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which tracks the most-liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 25 stocks in its basket, with Nvidia occupying the top position at 14.5% (read: Insights Into 13F Filings: ETFs to Bet Like Billionaires).
VanEck Vectors Semiconductor ETF has managed assets worth $8 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 7.5 million shares per day and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
The Spear Alpha ETF (SPRX)
The Spear Alpha ETF is an actively managed fund that invests in companies poised to benefit from breakthrough trends in industrial technology. The ETF’s objective is to find underappreciated opportunities across different industrial supply chains that are beneficiaries of secular themes such as enterprise digitalization, automation & robotics, artificial intelligence, environmental focus and decarbonization, photonics and additive manufacturing, and space exploration. The Spear Alpha ETF holds 23 stocks in its basket, with Nvidia taking the second spot at a 9.7% share.
The Spear Alpha ETF has accumulated $4 million in its asset base and charges 75 bps in annual fees. It trades in an average daily volume of 4,000 shares.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Global X Robotics & Artificial Intelligence ETF follows the Indxx Global Robotics & Artificial Intelligence Thematic Index, which seeks investment in companies that stand to benefit from the increased adoption and utilization of robotics and AI, including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles (read: Artificial Intelligence ETF Hits New 52-Week High).
Global X Robotics & Artificial Intelligence ETF has 44 stocks in its basket, with NVIDIA occupying the second spot with a 9.7% share. The ETF has AUM of $1.8 billion and an average daily volume of 670,000 shares. It charges 69 bps in annual fees.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Spear Alpha ETF (SPRX): ETF Research Reports
Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports
