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ETFs to Buy as NVIDIA Shares Gain Following Q4 Earnings Beat
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Key Takeaways
NVDA rose up to 3% after beating Q4 earnings and revenue estimates.
NVDA data center revenues reached $11B, driven by Blackwell growth.
SMH holds NVDA as its top position with an 18.70% portfolio weight.
Shares of NVIDIA (NVDA - Free Report) climbed as much as 3% in early after-hours trading yesterday (as cited by Yahoo Finance), after the artificial intelligence (AI) leader comfortably beat analysts’ expectations on both revenues and earnings. The company’s first-quarter fiscal 2027 guidance beat analysts’ expectations.
Against the backdrop of surging computing demand, largely fueled by the accelerating AI boom, NVIDIA’s strong quarterly performance enhances the stock’s outlook. In this context, it is worth noting that, based on short-term price targets from 47 analysts, the average price target for NVIDIA is $255.55, implying a solid 32.5% upside from the last closing price of $192.85.
For investors seeking to capitalize on the AI giant’s strong price momentum while mitigating company-specific risks, investing in exchange-traded funds (ETFs) with significant exposure to NVDA may be a prudent strategy.
But before diving into these ETFs, let us check NVDA’s overall performance in the fourth quarter of fiscal 2026, in terms of other metrics.
NVDA’s Q4 Results
NVIDIA’s fiscal fourth-quarter earnings beat the consensus estimate by 6.6% and went up 82% on a year-over-year basis. Revenues beat the consensus mark by 4.1% and rose 73% from the year-ago quarter’s reported top line.
The transition to accelerated computing and the infusion of AI across existing hyperscale workloads continued to fuel NVIDIA’s growth.
Within its data center segment, double-digit revenue growth was driven by sustained strength in Blackwell and the ramp-up of Blackwell Ultra. Networking, a cornerstone of NVDA’s data center scale infrastructure offering, reflected a standout performance in the recently reported quarter, generating $11 billion in revenues.
Within its Gaming segment, the AI giant added several new technologies and advancements in the fiscal fourth quarter, like DLSS 4.5, which uses AI to bring game visuals to a new level. Professional Visualization revenues topped $1 billion for the first time in the reported quarter, surging 159% year over year.
In terms of meaningful collaborations, NVIDIA announced a multiyear, multigenerational strategic partnership with Meta, including the large-scale deployment of NVIDIA CPUs, networking solutions and millions of Blackwell and Rubin GPUs. The company also expanded its partnership with AWS through new technology integrations, alongside an investment and deep technology collaboration with Anthropic. NVIDIA announced a co-innovation AI lab with pharma giant Eli Lilly (LLY - Free Report) to reinvent drug discovery in the AI era.
On the innovation front, the company unveiled the NVIDIA Rubin platform and introduced the NVIDIA Nemotron 3 and NVIDIA Earth-2 families of open models during the fiscal fourth quarter. It also launched NVIDIA G-SYNC Pulsar, the NVIDIA RTX PRO 5000 72GB Blackwell GPU, and the NVIDIA Alpamayo family of open AI models.
Looking ahead, NVDA expects revenues worth $78 billion in the first quarter of fiscal 2027, much higher than the consensus mark of $69.25 billion. NVIDIA projects the majority of its top-line growth to be driven by its data center segment.
Within its gaming segment, NVIDIA expects supply constraints to remain a significant headwind in the fiscal first quarter and beyond, despite anticipating strong end-market demand and healthy channel inventory levels.
This fund, with net assets worth $112.5 billion, offers exposure to 320 companies from the following industries: technology, software and services, technology hardware and equipment, and semiconductor and semiconductor equipment manufacturers. NVDA holds the top spot in this fund, with 18.04% weightage. The fund’s top three holdings include other tech giants — Apple (AAPL - Free Report) (14.33%) and Microsoft (MSFT - Free Report) (10.93%).
VGT has gained 27.8% over the past year. The fund charges 9 basis points (bps) as fees. It currently sports a Zacks ETF Rank of 1 (Strong Buy).
This fund, with net assets worth $167 million, provides exposure to 31 U.S.-listed semiconductor stocks. NVDA holds the top spot in this fund, with 19.25% weightage. Its top three holdings include other tech giants — Broadcom (AVGO - Free Report) (14.21%) and Micron Technology (MU - Free Report) (6.97%).
SHOC has soared 84.2% over the past year. The fund charges 40 bps as fees. It currently has a Zacks ETF Rank #2 (Buy).
This fund, with net assets worth $48.31 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the top spot in this fund, with 18.70% weightage. Its top three holdings include other tech giants — Taiwan Semiconductor (TSM - Free Report) (11.41%) and AVGO (6.81%).
SMH has surged 86.3% over the past year. The fund charges 35 bps as fees. It currently sports a Zacks ETF Rank of 1.
This fund, with net assets worth $164.1 million, offers exposure to 23 companies involved in semiconductor production and classified as a fabless. NVDA holds the top spot in this fund, with 21.46% weightage. Its top three holdings include other tech giants — AVGO (12.09%) and Monolithic Power Systems (MPWR - Free Report) (5.70%).
SMHX has gained 56.9% over the past year. The fund charges 35 bps as fees. It currently sports a Zacks ETF Rank of 1.
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ETFs to Buy as NVIDIA Shares Gain Following Q4 Earnings Beat
Key Takeaways
Shares of NVIDIA (NVDA - Free Report) climbed as much as 3% in early after-hours trading yesterday (as cited by Yahoo Finance), after the artificial intelligence (AI) leader comfortably beat analysts’ expectations on both revenues and earnings. The company’s first-quarter fiscal 2027 guidance beat analysts’ expectations.
Against the backdrop of surging computing demand, largely fueled by the accelerating AI boom, NVIDIA’s strong quarterly performance enhances the stock’s outlook. In this context, it is worth noting that, based on short-term price targets from 47 analysts, the average price target for NVIDIA is $255.55, implying a solid 32.5% upside from the last closing price of $192.85.
For investors seeking to capitalize on the AI giant’s strong price momentum while mitigating company-specific risks, investing in exchange-traded funds (ETFs) with significant exposure to NVDA may be a prudent strategy.
But before diving into these ETFs, let us check NVDA’s overall performance in the fourth quarter of fiscal 2026, in terms of other metrics.
NVDA’s Q4 Results
NVIDIA’s fiscal fourth-quarter earnings beat the consensus estimate by 6.6% and went up 82% on a year-over-year basis. Revenues beat the consensus mark by 4.1% and rose 73% from the year-ago quarter’s reported top line.
The transition to accelerated computing and the infusion of AI across existing hyperscale workloads continued to fuel NVIDIA’s growth.
Within its data center segment, double-digit revenue growth was driven by sustained strength in Blackwell and the ramp-up of Blackwell Ultra. Networking, a cornerstone of NVDA’s data center scale infrastructure offering, reflected a standout performance in the recently reported quarter, generating $11 billion in revenues.
Within its Gaming segment, the AI giant added several new technologies and advancements in the fiscal fourth quarter, like DLSS 4.5, which uses AI to bring game visuals to a new level. Professional Visualization revenues topped $1 billion for the first time in the reported quarter, surging 159% year over year.
In terms of meaningful collaborations, NVIDIA announced a multiyear, multigenerational strategic partnership with Meta, including the large-scale deployment of NVIDIA CPUs, networking solutions and millions of Blackwell and Rubin GPUs. The company also expanded its partnership with AWS through new technology integrations, alongside an investment and deep technology collaboration with Anthropic. NVIDIA announced a co-innovation AI lab with pharma giant Eli Lilly (LLY - Free Report) to reinvent drug discovery in the AI era.
On the innovation front, the company unveiled the NVIDIA Rubin platform and introduced the NVIDIA Nemotron 3 and NVIDIA Earth-2 families of open models during the fiscal fourth quarter. It also launched NVIDIA G-SYNC Pulsar, the NVIDIA RTX PRO 5000 72GB Blackwell GPU, and the NVIDIA Alpamayo family of open AI models.
Looking ahead, NVDA expects revenues worth $78 billion in the first quarter of fiscal 2027, much higher than the consensus mark of $69.25 billion. NVIDIA projects the majority of its top-line growth to be driven by its data center segment.
Within its gaming segment, NVIDIA expects supply constraints to remain a significant headwind in the fiscal first quarter and beyond, despite anticipating strong end-market demand and healthy channel inventory levels.
NVDA-Heavy ETFs to Buy
Vanguard Information Technology ETF (VGT - Free Report)
This fund, with net assets worth $112.5 billion, offers exposure to 320 companies from the following industries: technology, software and services, technology hardware and equipment, and semiconductor and semiconductor equipment manufacturers. NVDA holds the top spot in this fund, with 18.04% weightage. The fund’s top three holdings include other tech giants — Apple (AAPL - Free Report) (14.33%) and Microsoft (MSFT - Free Report) (10.93%).
VGT has gained 27.8% over the past year. The fund charges 9 basis points (bps) as fees. It currently sports a Zacks ETF Rank of 1 (Strong Buy).
Strive U.S. Semiconductor ETF (SHOC - Free Report)
This fund, with net assets worth $167 million, provides exposure to 31 U.S.-listed semiconductor stocks. NVDA holds the top spot in this fund, with 19.25% weightage. Its top three holdings include other tech giants — Broadcom (AVGO - Free Report) (14.21%) and Micron Technology (MU - Free Report) (6.97%).
SHOC has soared 84.2% over the past year. The fund charges 40 bps as fees. It currently has a Zacks ETF Rank #2 (Buy).
VanEck Semiconductor ETF (SMH - Free Report)
This fund, with net assets worth $48.31 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the top spot in this fund, with 18.70% weightage. Its top three holdings include other tech giants — Taiwan Semiconductor (TSM - Free Report) (11.41%) and AVGO (6.81%).
SMH has surged 86.3% over the past year. The fund charges 35 bps as fees. It currently sports a Zacks ETF Rank of 1.
VanEck Fabless Semiconductor ETF (SMHX - Free Report)
This fund, with net assets worth $164.1 million, offers exposure to 23 companies involved in semiconductor production and classified as a fabless. NVDA holds the top spot in this fund, with 21.46% weightage. Its top three holdings include other tech giants — AVGO (12.09%) and Monolithic Power Systems (MPWR - Free Report) (5.70%).
SMHX has gained 56.9% over the past year. The fund charges 35 bps as fees. It currently sports a Zacks ETF Rank of 1.