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Nvidia ETFs to Buy on Blockbuster Q2 Earnings

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Nvidia (NVDA - Free Report) reported blockbuster second-quarter fiscal 2022 results after market close yesterday, wherein it outpaced the Zacks Consensus Estimate for both earnings and revenues. The company also offered an upbeat guidance for the ongoing quarter.

Earnings per share came in at $1.04, beating the Zacks Consensus Estimate of $1.01 and improving 89% from the year-ago earnings. Revenues jumped 68% year over year to a record $6.51 billion and outpaced the consensus mark of $6.34 billion. The strong results were driven by record revenues in gaming and data center business. Gaming revenues climbed 85% year over year to $3.06 billion while data center sales surged 35% to $2.37 billion.

Nvidia provided revenue guidance for the fiscal third quarter of $6.80 billion (+/-2%). This is well above the Zacks Consensus Estimate of $6.53 billion. The chipmaker is expected to see continued momentum in the gaming business into 2H led by new gaming titles, back-to-school, and holiday season (read: Will Activision ETFs Shine Bright on Strong Q2 Results?).

Following the robust results, shares of NVIDIA initially declined in after-hours but jumped 2.5% later on elevated volume.

ETFs to Watch

The solid performance has put ETFs with higher allocation to this graphics chipmaker in the spotlight. Below we have highlighted some of the funds:

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 basis points (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 (read: 4 Sector ETFs & Stocks to Win Despite Weak July Retail Sales).

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 $711.6 million in its asset base while trading in an average daily volume of 73,000 shares. It charges 55 bps in annual fees from investors.

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 9.4% share in the basket. SOXQ debuted in the space in June and has accumulated 61.4 million in its asset base. It came up with zero fees and trades in an average daily volume of 52,000 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 9.3% share. The fund has amassed $7.1 billion in its asset base and charges a fee of 43 bps a year. It trades in a solid volume of 678,000 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 $266.7 million in its asset base and trades in an average daily volume of 26,000 shares. It charges 35 bps in annual fees.