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What's in Store for Nvidia ETFs in Fiscal Q2 Earnings?
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Graphics chipmaker NVIDIA (NVDA - Free Report) is set to release second-quarter fiscal 2022 results on Aug 18, after market close. As it has been one of the hottest stocks in the semiconductor space, let’s take a look at its fundamentals ahead of the earnings release.
NVIDIA has been rallying over the past three months, reaping gains of 42.4% and outperforming the industry average of 17.6%. This uptrend is likely to continue if the chipmaker beats estimates in its Q2 report.
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Earnings Whispers
NVIDIA currently has a Zacks Rank #3 (Hold) and has an Earnings ESP of -0.08%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) 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 negative earnings estimate revision of a penny over the past 7 days for the second quarter of fiscal 2022. Analysts decreasing estimates right before earnings — with the most up-to-date information possible — is not a good indicator for the stock. The company’s earnings surprise history is solid. However, it delivered an earnings surprise of 11.98%, on average, in the last four quarters. Additionally, it is expected to post robust earnings and revenue growth of 83.6% and 64.1%, respectively, for the to-be-reported quarter (read: Spate of Solid Q2 Earnings Fuel Semiconductor ETFs).
NVIDIA Corporation Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for the average target price is $207.13 with nearly 88% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
What to Watch?
Analysts expect broad-based strength in the to-be-reported quarter, especially in the gaming data center segments. In the fiscal first quarter, Nvidia provided revenue guidance of $6.30 billion (+/-2%) for the fiscal second quarter.
ETFs in Focus
Ahead of the results, investors could focus on ETFs having the largest allocation to NVIDIA. Below are five ETFs with the highest allocation to NVIDIA that could make compelling plays ahead of its earnings report.
This fund provides exposure to 25 securities by tracking the MVIS US Listed Semiconductor 25 Index. Nvidia occupies the second position with 9.7% of the assets. The product has managed assets worth $6 billion and charges 35 bps in annual fees and expenses. It is heavily traded with volume of 3.1 million shares per day and has a Zacks ETF Rank #3 with a High risk outlook.
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 26 stocks with NVIDIA taking the second spot with 9.5% share. American firms account for 45.5% of the portfolio while Japan and China round off the next two with a double-digit allocations each. The fund has gathered $727.3 million in its asset base while trading in an average daily volume of 68,000 shares. It charges 55 bps in annual fees from investors (read: Video Gaming ETFs to Surge on Soaring Sales Amid Pandemic).
This fund tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket. Intel occupies the top position with 9.5% share in the basket. SOXQ debuted in the space in June and has accumulated 58.1 million in its asset base. It came up with zero fees and trades in an average daily volume of 55,000 shares.
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 9.4% share. The fund has amassed $7 billion in its asset base and charges a fee of 43 bps a year. It trades in a solid volume of 725,000 shares and has a Zacks ETF Rank #2 with a High risk outlook (read: Semiconductor ETFs A Great Bet Now: Here's Why).
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 8.9% share. The fund has accumulated $265.8 million in its asset base and trades in an average daily volume of 26,000 shares. It charges 35 bps in annual fees.
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What's in Store for Nvidia ETFs in Fiscal Q2 Earnings?
Graphics chipmaker NVIDIA (NVDA - Free Report) is set to release second-quarter fiscal 2022 results on Aug 18, after market close. As it has been one of the hottest stocks in the semiconductor space, let’s take a look at its fundamentals ahead of the earnings release.
NVIDIA has been rallying over the past three months, reaping gains of 42.4% and outperforming the industry average of 17.6%. This uptrend is likely to continue if the chipmaker beats estimates in its Q2 report.
Image Source: Zacks Investment Research
Earnings Whispers
NVIDIA currently has a Zacks Rank #3 (Hold) and has an Earnings ESP of -0.08%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) 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 negative earnings estimate revision of a penny over the past 7 days for the second quarter of fiscal 2022. Analysts decreasing estimates right before earnings — with the most up-to-date information possible — is not a good indicator for the stock. The company’s earnings surprise history is solid. However, it delivered an earnings surprise of 11.98%, on average, in the last four quarters. Additionally, it is expected to post robust earnings and revenue growth of 83.6% and 64.1%, respectively, for the to-be-reported quarter (read: Spate of Solid Q2 Earnings Fuel Semiconductor ETFs).
NVIDIA Corporation Price, Consensus and EPS Surprise
NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation Quote
The Zacks Consensus Estimate for the average target price is $207.13 with nearly 88% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
What to Watch?
Analysts expect broad-based strength in the to-be-reported quarter, especially in the gaming data center segments. In the fiscal first quarter, Nvidia provided revenue guidance of $6.30 billion (+/-2%) for the fiscal second quarter.
ETFs in Focus
Ahead of the results, investors could focus on ETFs having the largest allocation to NVIDIA. Below are five ETFs with the highest allocation to NVIDIA that could make compelling plays ahead of its earnings report.
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 9.7% of the assets. The product has managed assets worth $6 billion and charges 35 bps in annual fees and expenses. It is heavily traded with volume of 3.1 million shares per day and has a Zacks ETF Rank #3 with a High risk outlook.
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 26 stocks with NVIDIA taking the second spot with 9.5% share. American firms account for 45.5% of the portfolio while Japan and China round off the next two with a double-digit allocations each. The fund has gathered $727.3 million in its asset base while trading in an average daily volume of 68,000 shares. It charges 55 bps in annual fees from investors (read: Video Gaming ETFs to Surge on Soaring Sales Amid Pandemic).
Invesco PHLX Semiconductor ETF (SOXQ - Free Report)
This fund tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket. Intel occupies the top position with 9.5% share in the basket. SOXQ debuted in the space in June and has accumulated 58.1 million in its asset base. It came up with zero fees and trades in an average daily volume of 55,000 shares.
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 9.4% share. The fund has amassed $7 billion in its asset base and charges a fee of 43 bps a year. It trades in a solid volume of 725,000 shares and has a Zacks ETF Rank #2 with a High risk outlook (read: Semiconductor ETFs A Great Bet Now: Here's Why).
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 8.9% share. The fund has accumulated $265.8 million in its asset base and trades in an average daily volume of 26,000 shares. It charges 35 bps in annual fees.