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5 ETFs to Watch as Nvidia Tops Q4 Earnings, Guides Higher
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Nvidia (NVDA - Free Report) reported blockbuster fourth-quarter fiscal 2021 results after market close yesterday, wherein it outpaced the Zacks Consensus Estimate on earnings and revenues. The company offered an upbeat guidance for the ongoing quarter.
Earnings per share came in at $3.10, beating the Zacks Consensus Estimate of $2.80 and improving 64% from year-ago earnings. Revenues jumped 61% year over year to a record $5 billion and outpaced the consensus mark of $4.83 billion. The company recorded $5 billion for the first time on higher demand for holiday gaming chips and renewed interest in cryptocurrency mining, which met with supply shortages.
The strong results were also driven by record revenues in gaming and data center business. Gaming revenues jumped 67% year over year to $2.50 billion while data center sales surged 97% to $1.90 billion. Cryptocurrency mining also drove revenues during the quarter. The company expects the new mining chips to generate about $50 million revenues in its fiscal first quarter (read: More Good News for Bitcoin: ETFs in Focus).
Nvidia provided revenue guidance for the fiscal first quarter of $5.30 billion (+/-2%). This is more than double the Zacks Consensus Estimate of $2.53 billion. While the flagship gaming chips are expected to remain in tight supply for the next several months, any stay-at-home mandate should boost demand for chips that speed up video games.
The robust results and an upbeat guidance pushed shares of NVIDIA higher by 2% in after-hours trading on elevated volume.
ETFs to Watch
This has put ETFs with higher allocation to this graphics chipmaker in the spotlight. Below we have highlighted some of the funds:
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Nvidia accounting for 10% share. The product has accumulated $74 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 61,000 shares and has a Zacks ETF Rank #3 (Hold).
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
This fund 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. It has 32 stocks in its basket with NVIDIA occupying the top spot with 8.1% share. The ETF has AUM of $2.7 billion and an average daily volume of 952,000 shares. It charges 68 bps in annual fees.
This ETF invests in the most inspiring, biblically aligned large companies in the United States. It follows the Inspire 100 Index and holds 101 stocks in its basket with NVIDIA taking the top position at 8% share. The fund has accumulated $175.8 million in its asset base and trades in an average daily volume of 26,000 shares. It charges 35 bps in annual fees.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
This fund offers exposure to global companies, involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. It holds 25 stocks with NVIDIA taking the second spot with 7.5% share. American firms account for one-third of the portfolio while China and Japan round off the next two with double-digit allocations each. The fund has gathered $907.4 million in its asset base while trading in an average daily volume of 164,000 shares. It charges 55 bps in annual fees from investors (read: A Thorough Guide to Video Gaming ETFs).
This ETF offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors by tracking the PHLX SOX Semiconductor Sector Index. Of these, NVIDIA takes the fourth position with 7.3% share. The fund amassed $6 billion in its asset base and charges a fee of 46 bps a year. It trades in a solid volume of 646,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 4 ETFs to Invest in Shining Semiconductor Stocks).
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5 ETFs to Watch as Nvidia Tops Q4 Earnings, Guides Higher
Nvidia (NVDA - Free Report) reported blockbuster fourth-quarter fiscal 2021 results after market close yesterday, wherein it outpaced the Zacks Consensus Estimate on earnings and revenues. The company offered an upbeat guidance for the ongoing quarter.
Earnings per share came in at $3.10, beating the Zacks Consensus Estimate of $2.80 and improving 64% from year-ago earnings. Revenues jumped 61% year over year to a record $5 billion and outpaced the consensus mark of $4.83 billion. The company recorded $5 billion for the first time on higher demand for holiday gaming chips and renewed interest in cryptocurrency mining, which met with supply shortages.
The strong results were also driven by record revenues in gaming and data center business. Gaming revenues jumped 67% year over year to $2.50 billion while data center sales surged 97% to $1.90 billion. Cryptocurrency mining also drove revenues during the quarter. The company expects the new mining chips to generate about $50 million revenues in its fiscal first quarter (read: More Good News for Bitcoin: ETFs in Focus).
Nvidia provided revenue guidance for the fiscal first quarter of $5.30 billion (+/-2%). This is more than double the Zacks Consensus Estimate of $2.53 billion. While the flagship gaming chips are expected to remain in tight supply for the next several months, any stay-at-home mandate should boost demand for chips that speed up video games.
The robust results and an upbeat guidance pushed shares of NVIDIA higher by 2% in after-hours trading on elevated volume.
ETFs to Watch
This has put ETFs with higher allocation to this graphics chipmaker in the spotlight. Below we have highlighted some of the funds:
MicroSectors FANG+ ETN (FNGS - Free Report)
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Nvidia accounting for 10% share. The product has accumulated $74 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 61,000 shares and has a Zacks ETF Rank #3 (Hold).
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
This fund 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. It has 32 stocks in its basket with NVIDIA occupying the top spot with 8.1% share. The ETF has AUM of $2.7 billion and an average daily volume of 952,000 shares. It charges 68 bps in annual fees.
Inspire 100 ETF (BIBL - Free Report)
This ETF invests in the most inspiring, biblically aligned large companies in the United States. It follows the Inspire 100 Index and holds 101 stocks in its basket with NVIDIA taking the top position at 8% share. The fund has accumulated $175.8 million in its asset base and trades in an average daily volume of 26,000 shares. It charges 35 bps in annual fees.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)
This fund offers exposure to global companies, involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. It holds 25 stocks with NVIDIA taking the second spot with 7.5% share. American firms account for one-third of the portfolio while China and Japan round off the next two with double-digit allocations each. The fund has gathered $907.4 million in its asset base while trading in an average daily volume of 164,000 shares. It charges 55 bps in annual fees from investors (read: A Thorough Guide to Video Gaming ETFs).
iShares PHLX Semiconductor ETF (SOXX - Free Report)
This ETF offers exposure to 30 U.S. companies that design, manufacture and distribute semiconductors by tracking the PHLX SOX Semiconductor Sector Index. Of these, NVIDIA takes the fourth position with 7.3% share. The fund amassed $6 billion in its asset base and charges a fee of 46 bps a year. It trades in a solid volume of 646,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 4 ETFs to Invest in Shining Semiconductor Stocks).
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>