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Nvidia (NVDA - Free Report) disaapointed investors with its first-quarter fiscal 2023 results despite beating the estimates on both earnings and revenues. The graphics chipmaker offered a weak sales guidance for the ongoing quarter.
The dismal guidance has pushed Nvidia shares down as much as 10% in after market trading on elevated volume. This has put ETFs having the largest allocation to NVIDIA in focus. These include MicroSectors FANG+ ETN (FNGS - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report) and Roundhill Ball Metaverse ETF (METV - Free Report) .
Nvidia Earnings in Focus
Earnings per share came in at $1.36, beating the Zacks Consensus Estimate of $1.30 and improving 49% from the year-ago earnings. Revenues jumped 46% year over year to a record $8.29 billion and outpaced the consensus mark of $8.12 billion. Nvidia has enjoyed a strong period of revenue growth during the pandemic as videogame consumption has increased and more individuals and businesses have started using digital services that run on data centers.
Gaming revenues climbed 31% year over year to a record $3.62 billion, while data center sales surged 83% to $3.75 billion. Professional visualization revenues spiked 67% to $622 million (read: Time for Semiconductor ETFs?).
Nvidia provided revenue guidance of $8.10 billion (+/-2%) for the second quarter of fiscal 2023. This is well below the Zacks Consensus Estimate of $8.39 billion. The company forecast that sales for video game chips would decline in the current quarter, citing supply-chain disruptions in China, reduced business in Russia and slowing the gaming market.
However, the company has geared up for the largest wave of new products in its history, with new GPU, CPU, DPU and robotics processors ramping in the second half.
MicroSectors FANG+ 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 a 10% share.
MicroSectors FANG+ ETN has accumulated $50.7 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 27,000 shares and has a Zacks ETF Rank #3 (Hold).
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
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.
Global X Robotics & Artificial Intelligence ETF has 38 stocks in its basket, with NVIDIA occupying the second spot with a 9.7% share. The ETF has AUM of $1.5 billion and an average daily volume of 730,000 shares. It charges 68 bps in annual fees (read: 5 Top Tech Areas That Deserve Your Attention Now).
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 second position at 8.4%.
VanEck Vectors Semiconductor ETF has managed assets worth $7.5 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 #1 (Strong Buy) with a High risk outlook.
TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report)
TrueShares Technology, AI and Deep Learning ETF is an actively managed fund targeting companies with leading-edge artificial intelligence, machine learning, or deep-learning technology platforms, algorithms, or applications that are believed to provide distinct competitive advantages in an industry historically characterized by a winner-take-all consolidation behavior.
TrueShares Technology, AI and Deep Learning ETF holds 22 stocks in its basket, with Nvidia taking the third spot at 7.7% share. It charges 68 bps in fees per year. LRNZ has amassed $17.9 million in its asset base and trades in an average daily volume of 5,000 shares.
Roundhill Ball Metaverse ETF is designed to offer investors exposure to the Metaverse by tracking the Ball Metaverse Index. It holds 43 stocks in the basket, with Nvidia occupying the third position at 7.4%. Roundhill Ball Metaverse ETF has key holdings in gaming platforms, computing components, cloud solutions, and social network (read: Metaverse an Emerging Concept Now: 4 ETFs to Tap).
Roundhill Ball Metaverse ETF debuted in the space in June last year and has accumulated $527.6 million in its asset base. METV charges 59 bps in fees per year and trades in an average daily volume of 589,000 shares.
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Nvidia Sinks on Dismal Guidance: ETFs in Focus
Nvidia (NVDA - Free Report) disaapointed investors with its first-quarter fiscal 2023 results despite beating the estimates on both earnings and revenues. The graphics chipmaker offered a weak sales guidance for the ongoing quarter.
The dismal guidance has pushed Nvidia shares down as much as 10% in after market trading on elevated volume. This has put ETFs having the largest allocation to NVIDIA in focus. These include MicroSectors FANG+ ETN (FNGS - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report) and Roundhill Ball Metaverse ETF (METV - Free Report) .
Nvidia Earnings in Focus
Earnings per share came in at $1.36, beating the Zacks Consensus Estimate of $1.30 and improving 49% from the year-ago earnings. Revenues jumped 46% year over year to a record $8.29 billion and outpaced the consensus mark of $8.12 billion. Nvidia has enjoyed a strong period of revenue growth during the pandemic as videogame consumption has increased and more individuals and businesses have started using digital services that run on data centers.
Gaming revenues climbed 31% year over year to a record $3.62 billion, while data center sales surged 83% to $3.75 billion. Professional visualization revenues spiked 67% to $622 million (read: Time for Semiconductor ETFs?).
Nvidia provided revenue guidance of $8.10 billion (+/-2%) for the second quarter of fiscal 2023. This is well below the Zacks Consensus Estimate of $8.39 billion. The company forecast that sales for video game chips would decline in the current quarter, citing supply-chain disruptions in China, reduced business in Russia and slowing the gaming market.
However, the company has geared up for the largest wave of new products in its history, with new GPU, CPU, DPU and robotics processors ramping in the second half.
ETFs in Focus
Let’s delve into each ETF below:
MicroSectors FANG+ ETN (FNGS - Free Report)
MicroSectors FANG+ 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 a 10% share.
MicroSectors FANG+ ETN has accumulated $50.7 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 27,000 shares and has a Zacks ETF Rank #3 (Hold).
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
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.
Global X Robotics & Artificial Intelligence ETF has 38 stocks in its basket, with NVIDIA occupying the second spot with a 9.7% share. The ETF has AUM of $1.5 billion and an average daily volume of 730,000 shares. It charges 68 bps in annual fees (read: 5 Top Tech Areas That Deserve Your Attention Now).
VanEck Vectors Semiconductor ETF (SMH - Free Report)
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 second position at 8.4%.
VanEck Vectors Semiconductor ETF has managed assets worth $7.5 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 #1 (Strong Buy) with a High risk outlook.
TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report)
TrueShares Technology, AI and Deep Learning ETF is an actively managed fund targeting companies with leading-edge artificial intelligence, machine learning, or deep-learning technology platforms, algorithms, or applications that are believed to provide distinct competitive advantages in an industry historically characterized by a winner-take-all consolidation behavior.
TrueShares Technology, AI and Deep Learning ETF holds 22 stocks in its basket, with Nvidia taking the third spot at 7.7% share. It charges 68 bps in fees per year. LRNZ has amassed $17.9 million in its asset base and trades in an average daily volume of 5,000 shares.
Roundhill Ball Metaverse ETF (METV - Free Report)
Roundhill Ball Metaverse ETF is designed to offer investors exposure to the Metaverse by tracking the Ball Metaverse Index. It holds 43 stocks in the basket, with Nvidia occupying the third position at 7.4%. Roundhill Ball Metaverse ETF has key holdings in gaming platforms, computing components, cloud solutions, and social network (read: Metaverse an Emerging Concept Now: 4 ETFs to Tap).
Roundhill Ball Metaverse ETF debuted in the space in June last year and has accumulated $527.6 million in its asset base. METV charges 59 bps in fees per year and trades in an average daily volume of 589,000 shares.