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Nvidia ETFs in Focus Ahead of Q4 Earnings

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Graphics chipmaker Nvidia (NVDA - Free Report) is set to release fourth-quarter fiscal 2022 results on Feb 16, after market close. Caught in the tech sector selling spree, triggered by rate hike concerns, NVIDIA has plunged 19.2% over the past three months. The stock is underperforming the industry’s average loss of 14.5%. This trend might reverse if the chipmaker comes up with an earnings beat in its Q4 report.

Given this, ETFs having the largest allocation to NVIDIA could make compelling plays ahead of its earnings report. These include Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , Roundhill Ball Metaverse ETF (METV - Free Report) and VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) .

Earnings Whispers

Nvidia currently has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. 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 no earnings estimate revision over the past 30 days for the fourth quarter of fiscal 2022. Nvidia’s earnings surprise history is solid. It delivered an earnings surprise of 7.67%, on average, in the last four quarters. Additionally, NVDA is expected to post robust earnings and revenue growth of 56.4% and 48.5%, respectively, for the to-be-reported quarter.

The Zacks Consensus Estimate for the average target price is $310.02, with nearly 92% of the analysts giving a Strong Buy or a Buy rating ahead of NVDA earnings.

What to Watch?

Nvidia provided revenue guidance for the fiscal fourth quarter of $7.40 billion (+/-2%). The chipmaker is expected to see continued momentum in the gaming business led by new gaming titles and the holiday season (read: 4 Stocks & ETFs to Make the Most of Metaverse Boom).

ETFs in Focus

Let’s delve into each ETF below:

Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report)

Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF, seeking concentrated exposure to the leader of autonomous driving technology and then enhancing the concentrated exposure with options. It is heavily exposed to the Tesla (TSLA) stock and Tesla call options at 25% share. Beyond Tesla, Nvidia takes the largest 11.7% share in the basket.  

Simplify Volt Robocar Disruption and Tech ETF seeks to boost its performance during extreme moves in Tesla, charging investors 0.95% in annual fees. It has accumulated $8.2 million in its asset base while trading in an average daily volume of 20,000 shares.

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 top spot with an 11% share. The ETF has AUM of $2.2 billion and an average daily volume of 657,000 shares. It charges 68 bps in annual fees (read: Navigating Thematic ETFs in 2022).

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 8.9%.  

VanEck Vectors Semiconductor ETF has managed assets worth $8.8 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 5.8 million shares per day and has a Zacks ETF Rank #1 with a High risk outlook.

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 45 stocks in the basket, with Nvidia occupying the top position at 8.9%. Computing components takes the largest share at 19.4%, while cloud solutions, gaming platform and social network round off the next three spots.

Roundhill Ball Metaverse ETF debuted in the space in June last year and has accumulated $870 million in its asset base. METV charges 59 bps in fees per year and trades in an average daily volume of 1 million shares.

VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report)

VanEck Video Gaming and eSports ETF 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. ESPO holds 25 stocks, with NVIDIA taking the fourth spot with 6.9% share. VanEck Video Gaming and eSports ETF is tilted toward American firms, which account for 40.2% of the portfolio, while Japan and China round off the next two with double-digit allocations each (read: Grab These Video Gaming ETFs to Gain From Soaring Sales Trend).

VanEck Video Gaming and eSports ETF has gathered $9 billion in its asset base while trading in an average daily volume of 96,000 shares. ESPO charges 55 bps in annual fees from investors.

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