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.
Nvidia (NVDA - Free Report) is enjoying its hottest winning streak ahead of its third-quarter fiscal 2024 results on Nov 21. The stock has soared 22% since the start of November, marking a 10-day winning streak, the longest such run since 2016, and adding an astounding $220 billion in market value. This winning streak has resulted in Nvidia's shares rising to record highs.
The AI-driven frenzy, coupled with the rebound in technology stocks amid hopes that Fed interest rates have peaked, has driven the stock higher (read: 5 Tech ETFs That Outperformed XLK in the Past Week).
Investors could tap the strength with the help of ETFs having the largest allocation to NVIDIA. These include GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , AXS Esoterica NextG Economy ETF (WUGI - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) .
Shares of NVDA rallied more than 240% this year, making it the best performer on both the Nasdaq 100 and S&P 500 indexes.
A key factor driving the surge is Nvidia's dominant position in the AI sector. The world’s largest chipmaker continues to benefit from the explosive demand for its cutting-edge chips used in AI applications, which are used to power ChatGPT and many similar services. It is boosting supply to meet surging demand. Nvidia's chips are used in applications ranging from robotics and the metaverse to medical imaging and video analytics.
In fact, the launch of its latest AI processor, the H200 chip, has played a crucial role in the company's record-breaking rally, highlighting Nvidia's innovative strength in the AI sector. Nvidia said that H200 will get the ability to use high-bandwidth memory, or HBM3e, allowing it to better cope with the large data sets needed for developing and implementing AI.
Nvidia's impressive performance is reflected in its financial results and forecasts. On its last earnings call, Nvidia CEO Jensen Huang said, "A new computing era has begun." "Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI" (read: Nvidia Soars on Blockbuster Q2 earnings: ETFs to Buy).
Bulls Are Here!
Wall Street is bullish on the stock. Nvidia currently has an average brokerage recommendation (ABR) of 1.13 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 36 brokerage firms. The current ABR compares to an ABR of 1.13 a month ago based on 36 recommendations.
Of the 36 recommendations deriving the current ABR, 32 are Strong Buy, and three are Buy. Strong Buy and Buy, respectively, account for 88.89% and 8.33% of all recommendations. A month ago, Strong Buy made up 88.89%, while Buy represented 8.33%.
Based on short-term price targets offered by 34 analysts, the average price target for Nvidia comes to $625.53. The forecasts range from a low of $460.00 to a high of $1,100.00.
Solid Nvidia Fundamentals
Nvidia has seen no earnings estimate revision over the past 30 days for the third quarter of fiscal 2024. Nvidia’s earnings surprise history is good, as it delivered an earnings surprise of 9.79%, on average, in the last four quarters. Nvidia is expected to post triple-digit earnings and revenue growth of 475.9% and 171.7%, respectively, for the to-be-reported quarter.
For fiscal 2024, Nvidia earnings estimates have been raised by 8 cents over the past seven days. This implies year-over-year growth of 223.9%. Revenues are expected to grow 101.7% for the current fiscal. Further, Nvidia has a Growth Score of A and falls under the top industry rank (in the top 20%).
GraniteShares 1.5x Long NVDA Daily ETF magnifies exposure to a single trade, seeking 1.5 times (150%) the daily percentage change of the common stock of NVIDIA. It has an expense ratio of 1.15% and trades in a volume of 688,000 shares a day on average. GraniteShares 1.5x Long NVDA Daily ETF has amassed $252.8 million in its asset base.
VanEck Vectors Semiconductor ETF offers exposure to 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 26 stocks in its basket, with Nvidia occupying the top position at 20.3%.
VanEck Vectors Semiconductor ETF has managed assets worth $10.8 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 8.4 million shares per day and has a Zacks ETF Rank #1 with a High risk outlook (read: Inside the Recent Surge in Semiconductor ETFs).
AXS Esoterica NextG Economy ETF is an actively managed ETF that invests in stocks of companies that benefit from the ever-evolving digital economy. It holds 33 stocks in the basket, with Nvidia occupying the top position at 20.1%.
AXS Esoterica NextG Economy ETF has accumulated $22.3 million in its asset base and charges 75 bps in fees per year. It trades in an average daily volume of 2,000 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 (read: Guide to Artificial Intelligence ETFs).
Global X Robotics & Artificial Intelligence ETF has 44 stocks in its basket, with NVIDIA occupying the top spot with 16.1% share. The ETF has AUM of $2 billion and an average daily volume of 898,000 shares. It charges 69 bps in annual fees.
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 80 stocks in its basket. Out of these, Nvidia is the top firm, accounting for an 11.1% share.
Pacer Data and Digital Revolution ETF debuted in June last year and has accumulated $5.2 million in its asset base. It has an expense ratio of 0.60%. TRFK trades in a meager volume of under 2,000 shares per day on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
5 ETFs to Tap Nvidia's Historic Surge
Nvidia (NVDA - Free Report) is enjoying its hottest winning streak ahead of its third-quarter fiscal 2024 results on Nov 21. The stock has soared 22% since the start of November, marking a 10-day winning streak, the longest such run since 2016, and adding an astounding $220 billion in market value. This winning streak has resulted in Nvidia's shares rising to record highs.
The AI-driven frenzy, coupled with the rebound in technology stocks amid hopes that Fed interest rates have peaked, has driven the stock higher (read: 5 Tech ETFs That Outperformed XLK in the Past Week).
Investors could tap the strength with the help of ETFs having the largest allocation to NVIDIA. These include GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) , AXS Esoterica NextG Economy ETF (WUGI - Free Report) , Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) and Pacer Data and Digital Revolution ETF (TRFK - Free Report) .
Shares of NVDA rallied more than 240% this year, making it the best performer on both the Nasdaq 100 and S&P 500 indexes.
A key factor driving the surge is Nvidia's dominant position in the AI sector. The world’s largest chipmaker continues to benefit from the explosive demand for its cutting-edge chips used in AI applications, which are used to power ChatGPT and many similar services. It is boosting supply to meet surging demand. Nvidia's chips are used in applications ranging from robotics and the metaverse to medical imaging and video analytics.
In fact, the launch of its latest AI processor, the H200 chip, has played a crucial role in the company's record-breaking rally, highlighting Nvidia's innovative strength in the AI sector. Nvidia said that H200 will get the ability to use high-bandwidth memory, or HBM3e, allowing it to better cope with the large data sets needed for developing and implementing AI.
Nvidia's impressive performance is reflected in its financial results and forecasts. On its last earnings call, Nvidia CEO Jensen Huang said, "A new computing era has begun." "Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI" (read: Nvidia Soars on Blockbuster Q2 earnings: ETFs to Buy).
Bulls Are Here!
Wall Street is bullish on the stock. Nvidia currently has an average brokerage recommendation (ABR) of 1.13 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 36 brokerage firms. The current ABR compares to an ABR of 1.13 a month ago based on 36 recommendations.
Of the 36 recommendations deriving the current ABR, 32 are Strong Buy, and three are Buy. Strong Buy and Buy, respectively, account for 88.89% and 8.33% of all recommendations. A month ago, Strong Buy made up 88.89%, while Buy represented 8.33%.
Based on short-term price targets offered by 34 analysts, the average price target for Nvidia comes to $625.53. The forecasts range from a low of $460.00 to a high of $1,100.00.
Solid Nvidia Fundamentals
Nvidia has seen no earnings estimate revision over the past 30 days for the third quarter of fiscal 2024. Nvidia’s earnings surprise history is good, as it delivered an earnings surprise of 9.79%, on average, in the last four quarters. Nvidia is expected to post triple-digit earnings and revenue growth of 475.9% and 171.7%, respectively, for the to-be-reported quarter.
For fiscal 2024, Nvidia earnings estimates have been raised by 8 cents over the past seven days. This implies year-over-year growth of 223.9%. Revenues are expected to grow 101.7% for the current fiscal. Further, Nvidia has a Growth Score of A and falls under the top industry rank (in the top 20%).
ETFs to Tap
Let’s delve into each ETF below:
GraniteShares 1.5x Long NVDA Daily ETF (NVDL - Free Report)
GraniteShares 1.5x Long NVDA Daily ETF magnifies exposure to a single trade, seeking 1.5 times (150%) the daily percentage change of the common stock of NVIDIA. It has an expense ratio of 1.15% and trades in a volume of 688,000 shares a day on average. GraniteShares 1.5x Long NVDA Daily ETF has amassed $252.8 million in its asset base.
VanEck Vectors Semiconductor ETF (SMH - Free Report)
VanEck Vectors Semiconductor ETF offers exposure to 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 26 stocks in its basket, with Nvidia occupying the top position at 20.3%.
VanEck Vectors Semiconductor ETF has managed assets worth $10.8 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 8.4 million shares per day and has a Zacks ETF Rank #1 with a High risk outlook (read: Inside the Recent Surge in Semiconductor ETFs).
AXS Esoterica NextG Economy ETF (WUGI - Free Report)
AXS Esoterica NextG Economy ETF is an actively managed ETF that invests in stocks of companies that benefit from the ever-evolving digital economy. It holds 33 stocks in the basket, with Nvidia occupying the top position at 20.1%.
AXS Esoterica NextG Economy ETF has accumulated $22.3 million in its asset base and charges 75 bps in fees per year. It trades in an average daily volume of 2,000 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 (read: Guide to Artificial Intelligence ETFs).
Global X Robotics & Artificial Intelligence ETF has 44 stocks in its basket, with NVIDIA occupying the top spot with 16.1% share. The ETF has AUM of $2 billion and an average daily volume of 898,000 shares. It charges 69 bps in annual fees.
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 80 stocks in its basket. Out of these, Nvidia is the top firm, accounting for an 11.1% share.
Pacer Data and Digital Revolution ETF debuted in June last year and has accumulated $5.2 million in its asset base. It has an expense ratio of 0.60%. TRFK trades in a meager volume of under 2,000 shares per day on average.