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Nvidia Blockbuster Q1 Earnings Put These ETFs in Focus

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Nvidia (NVDA - Free Report) reported blockbuster first-quarter fiscal 2022 results after market close yesterday, wherein it outpaced the Zacks Consensus Estimate on earnings and revenues. In fact, the company posted record revenues and profits, buoyed by demand for videogaming and cryptocurrency despite a broad-based shortage of semiconductors. The chipmaker also offered an upbeat guidance for the ongoing quarter.

Earnings per share came in at $3.66, beating the Zacks Consensus Estimate of $3.28 and improving from the year-ago earnings of $1.80. Revenues jumped 84% year over year to a record $5.66 billion and outpaced the consensus mark of $5.40 billion. The strong results were driven by record revenues in gaming and data center business. Gaming revenues more than doubled to $2.76 billion while data center sales surged 79% to $2.05 billion. Cryptocurrency mining also drove revenues during the quarter.

Nvidia provided revenue guidance for the fiscal second quarter of $6.30 billion (+/-2%). This is well above the Zacks Consensus Estimate of $5.50 billion.

The chipmaker announced a 4 for 1 stock split in the form of a stock dividend last week. The split has been approved by the Board of Directors but is awaiting approval from shareholders at the company's annual meeting on Jun 3. If approved, each Nvidia shareholder of record at the close of business on Jun 21 will receive three additional shares of common stock for every share held. The Nvidia stock will begin trading on the split-adjusted basis on Jul 20. The move will make the stock more accessible to investors and employees, and attract individual investors, who make small trade (read: Nvidia Poised for Strong Q1 Earnings: ETFs to Soar).

Despite the robust results and an upbeat guidance, shares of NVIDIA dropped 1% 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:

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 9.3% share. The ETF has AUM of $2.5 billion and an average daily volume of 657,000 shares. It charges 68 bps in annual fees (read: 5 Most-Crowded Trades & Their Winning ETFs).

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 top spot with 9.1% share. American firms account for one-third of the portfolio while Japan and China round off the next two with double-digit allocations each. The fund has gathered $790.8 million in its asset base while trading in an average daily volume of 103,000 shares. It charges 55 bps in annual fees from investors (read: Video Gaming ETFs to Gain on Surging Sales Amid Pandemic).

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 top position with 9% share. The fund has amassed $6.5 billion in its asset base and charges a fee of 46 bps a year. It trades in a solid volume of 1.5 million shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

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 7.9% share. The fund has accumulated $235.9 million in its asset base and trades in an average daily volume of 25,000 shares. It charges 35 bps in annual fees.

VanEck Vectors Semiconductor ETF (SMH - Free Report)

This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. Nvidia occupies the second position with 8.2% of the assets. The product has managed assets worth $5.3 billion and charges 35 bps in annual fees and expenses. It is heavily traded with volume of 4.9 million shares per day and has a Zacks ETF Rank #3 with a High risk outlook.

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