We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs in Focus On Nvidia's Q2 Earnings Miss & Weak Outlook
Read MoreHide Full Article
Nvidia (NVDA - Free Report) disappointed investors with its second-quarter fiscal 2023 results, wherein it missed earnings estimates and forecast a sharp drop in revenues for the current quarter due to a slowdown in PC and gaming sales. Revenues were in line with the estimates.
The dismal guidance has pushed Nvidia shares down nearly 5% in after-market trading on elevated volume. This has put ETFs having the largest allocation to NVIDIA in focus. These include Pacer Data and Digital Revolution ETF (TRFK - Free Report) , AI Powered Equity ETF (AIEQ - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) and Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) .
Nvidia Earnings in Focus
Earnings per share came in at 51 cents, missing the Zacks Consensus Estimate of 56 cents and declining 51% from the year-ago earnings. Revenues rose 3% year over year to $6.7 billion, in line with the consensus mark. 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 dropped 33% year over year to a record $2.04 billion, while data center sales surged 61% to $3.81 billion. Professional visualization revenues declined 4% to $496 million (read: Nvidia Tumbles on Fiscal Q2 Revenue Warnings: ETFs in Focus).
The graphics chipmaker provided revenue guidance of $5.90 billion (+/-2%) for the third quarter of fiscal 2023. This is well below the Zacks Consensus Estimate of $7.02 billion. Nvidia cited weakening demand for its gaming processors by its channel partners and resellers, noting that the lower sales were likely the result of "macroeconomic headwinds." 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 up in the second half.
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 85 stocks in its basket. Out of these, Nvidia is the top firm, accounting for a 9.6% share. Semiconductors take the largest share at 31.2%, while system software and communication equipment round off the next two spots.
Pacer Data and Digital Revolution ETF is newly debuted in the space in June and has an expense ratio of 0.60%. It trades in a meager volume of under 500 shares per day on average (read: Cisco Pops on Earnings Beat: ETFs to Buy).
With AUM of $120 million, AI Powered Equity ETF is the first actively managed ETF to fully utilize artificial intelligence as a method for stock selection. The ETF applies proprietary analytical algorithms to AI technology, which can process over one million pieces of information per day to build predictive financial models on approximately 6,000 U.S. companies. AI Powered Equity ETF holds a basket of 138 securities, with Nvidia taking the top spot at 9.7%.
AI Powered Equity ETF charges 75 bps in annual fees and trades in a lower volume of 7,000 shares per day on average.
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 8.8%.
VanEck Vectors Semiconductor ETF has managed assets worth $7 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 3.7 million shares per day and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with Nvidia occupying the top spot at 7.9% (read: Semiconductor ETFs to Buy Now).
iShares Semiconductor ETF has amassed $6.6 billion in its asset base and trades in a volume of about 954,000 shares a day. It charges a fee of 40 bps a year from investors.
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 41 stocks in its basket, with NVIDIA occupying the fifth spot with an 8.4% share. The ETF has AUM of $1.4 billion and an average daily volume of 506,000 shares. It charges 68 bps in annual fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Focus On Nvidia's Q2 Earnings Miss & Weak Outlook
Nvidia (NVDA - Free Report) disappointed investors with its second-quarter fiscal 2023 results, wherein it missed earnings estimates and forecast a sharp drop in revenues for the current quarter due to a slowdown in PC and gaming sales. Revenues were in line with the estimates.
The dismal guidance has pushed Nvidia shares down nearly 5% in after-market trading on elevated volume. This has put ETFs having the largest allocation to NVIDIA in focus. These include Pacer Data and Digital Revolution ETF (TRFK - Free Report) , AI Powered Equity ETF (AIEQ - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , iShares Semiconductor ETF (SOXX - Free Report) and Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) .
Nvidia Earnings in Focus
Earnings per share came in at 51 cents, missing the Zacks Consensus Estimate of 56 cents and declining 51% from the year-ago earnings. Revenues rose 3% year over year to $6.7 billion, in line with the consensus mark. 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 dropped 33% year over year to a record $2.04 billion, while data center sales surged 61% to $3.81 billion. Professional visualization revenues declined 4% to $496 million (read: Nvidia Tumbles on Fiscal Q2 Revenue Warnings: ETFs in Focus).
The graphics chipmaker provided revenue guidance of $5.90 billion (+/-2%) for the third quarter of fiscal 2023. This is well below the Zacks Consensus Estimate of $7.02 billion. Nvidia cited weakening demand for its gaming processors by its channel partners and resellers, noting that the lower sales were likely the result of "macroeconomic headwinds." 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 up in the second half.
ETFs in Focus
Let’s delve into each ETF below:
Pacer Data and Digital Revolution ETF (TRFK - Free Report)
Pacer Data and Digital Revolution ETF aims to offer investors exposure to the globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 85 stocks in its basket. Out of these, Nvidia is the top firm, accounting for a 9.6% share. Semiconductors take the largest share at 31.2%, while system software and communication equipment round off the next two spots.
Pacer Data and Digital Revolution ETF is newly debuted in the space in June and has an expense ratio of 0.60%. It trades in a meager volume of under 500 shares per day on average (read: Cisco Pops on Earnings Beat: ETFs to Buy).
AI Powered Equity ETF (AIEQ - Free Report)
With AUM of $120 million, AI Powered Equity ETF is the first actively managed ETF to fully utilize artificial intelligence as a method for stock selection. The ETF applies proprietary analytical algorithms to AI technology, which can process over one million pieces of information per day to build predictive financial models on approximately 6,000 U.S. companies. AI Powered Equity ETF holds a basket of 138 securities, with Nvidia taking the top spot at 9.7%.
AI Powered Equity ETF charges 75 bps in annual fees and trades in a lower volume of 7,000 shares per day on average.
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 8.8%.
VanEck Vectors Semiconductor ETF has managed assets worth $7 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 3.7 million shares per day and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
iShares Semiconductor ETF (SOXX - Free Report)
iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with Nvidia occupying the top spot at 7.9% (read: Semiconductor ETFs to Buy Now).
iShares Semiconductor ETF has amassed $6.6 billion in its asset base and trades in a volume of about 954,000 shares a day. It charges a fee of 40 bps a year from investors.
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 41 stocks in its basket, with NVIDIA occupying the fifth spot with an 8.4% share. The ETF has AUM of $1.4 billion and an average daily volume of 506,000 shares. It charges 68 bps in annual fees.