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The Zacks Analyst Blog Highlights NVDA, FTEC, VGT, SMH, IYW and XLK
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For Immediate Release
Chicago, IL – May 26, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , Vanguard Information Technology Index Fund ETF Shares (VGT - Free Report) , VanEck Semiconductor ETF (SMH - Free Report) , iShares U.S. Technology ETF (IYW - Free Report) and State Street Technology Select Sector SPDR ETF (XLK - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Buy These ETFs as NVIDIA Posts Record Q1 Revenues, Beats on Earnings
Shares of NVIDIA slipped around 1.6% in after-hours trading on May 20, 2026 (as cited in BBC), as investors appeared unimpressed despite the AI giant delivering better-than-expected first-quarter fiscal 2027 results. The company also unveiled a sharp increase in its quarterly dividend to 25 cents per share.
As NVDA continues to lead the AI landscape and hold its position as the world’s most valuable company by market value, this pullback in its share price might entice investors to increase their exposure in this stock right away.
NVIDIA is entirely dependent on Taiwan Semiconductor (TSM) to physically fabricate its Blackwell and upcoming Rubin architecture chips. Any escalation in geopolitical tensions surrounding Taiwan could instantly paralyze Nvidia's supply chain.
Nevertheless, the company is undoubtedly a central player in the AI industry, with its short-term average price target of $276.46 implying a solid 23.7% upside from the last closing price of $223.47.
Against this backdrop, investors seeking to capitalize on the AI giant’s strong price momentum while mitigating company-specific risks may consider adding exchange-traded funds (ETFs) with significant exposure to NVDA to their portfolios.
But before diving into these ETFs, let us check NVDA’s overall performance in the first quarter of fiscal 2027, in terms of other metrics.
NVDA’s Q1 Results
NVIDIA’s fiscal first-quarter earnings beat the Zacks consensus estimate by 5.7%, while its revenues beat the consensus mark by 3.6%. The company posted record revenues worth $81.6 billion, which surged 85% year over year.
Its data Center revenues went up 92% year over year, driven by sustained strength in Blackwell architecture and strong demand for its GB300NVL72.
NVIDIA AI infrastructure is now deployed across nearly 40 countries, representing $50 trillion in GDP, backed by the accelerating build-out of AI factories. The company’s physical AI is also gaining momentum, with this business having exceeded $9 billion in revenues over the past 12 months.
In terms of meaningful collaborations, NVIDIA expanded its alliance with Google Cloud to advance agentic and physical AI, including new NVIDIA Vera Rubin-powered A5X instances and a preview of Google Gemini models on Google Distributed Cloud running on NVIDIA Blackwell and Blackwell Ultra GPUs.
The company also enhanced its partnership with Hyundai Motor Company and Kia for next-generation autonomous driving built on the NVIDIA DRIVE Hyperion platform.
On the innovation front, the company unveiled the NVIDIA Vera Rubin platform, including the NVIDIA Vera CPU, the world’s first processor purpose-built for agentic AI, and NVIDIA BlueField-4 STX, an accelerated storage infrastructure for agentic AI factories, during the fiscal first quarter.
The company is on track to commence production shipments of Vera Rubin in the second half of this year, starting in the third quarter. By integrating seven purpose-built chips across five accelerated racks, Vera Rubin will deliver up to 35x higher inference throughput and up to 10x greater AI factory revenues compared with Blackwell.
It also expanded its partnership with Uber to launch a fleet of autonomous vehicles powered by full-stack NVIDIA DRIVE AV software. Looking ahead, NVDA expects its partnership with Uber to power the robotaxi fleet across nearly 30 cities and four continents by 2028.
NVDA-Heavy ETFs to Buy
Fidelity MSCI Information Technology Index ETF
This fund, with net assets worth $17.89 billion, offers exposure to 286 information technology stocks. Of these, NVDA holds the first position in this fund, with 18.83% weightage.
FTEC has escalated 25.8% year to date. The fund charges 8 basis points (bps) in fees and traded at a volume of 0.23 million shares in the last trading session. It sports a Zacks ETF Rank #1 (Strong Buy).
Vanguard Information Technology Index Fund ETF Shares
This fund, with net assets worth $124.9 billion, offers exposure to 316 companies in three general areas: technology software and services, technology hardware and equipment, and semiconductor and semiconductor equipment manufacturers. NVDA holds the first position in this fund, with 18.59% weightage.
VGT has risen 21.5% year to date. The fund charges 9 bps in fees and traded at a good volume of 3.67 million shares in the last trading session. It sports a Zacks ETF Rank #1.
VanEck Semiconductor ETF
This fund, with net assets worth $64.87 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the first position in this fund, with 16.70% weightage.
SMH has surged 57.7% year to date. The fund charges 35 bps in fees and traded at a good volume of 8.29 million shares in the last trading session. It sports a Zacks ETF Rank #1.
iShares U.S. Technology ETF
This fund, with net assets worth $23.76 billion, offers exposure to 139 software, semiconductors, and tech hardware companies in the United States. NVDA holds the first position in this fund, with 16.57% weightage.
IYW has risen 20.2% year to date. The fund charges 38 bps as fees and traded at a good volume of 1.03 million shares in the last trading session. It sports a Zacks ETF Rank #1.
State Street Technology Select Sector SPDR ETF
This fund, with net assets worth $115.5 billion, offers exposure to 73 companies from technology hardware, storage and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components industries. NVDA holds the first position in this fund, with 14.54% weightage.
XLK has gained 24.1% year to date. The fund charges 8 bps in fees and traded at a good volume of 10.87 million shares in the last trading session. It sports a Zacks ETF Rank #1.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights NVDA, FTEC, VGT, SMH, IYW and XLK
For Immediate Release
Chicago, IL – May 26, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , Vanguard Information Technology Index Fund ETF Shares (VGT - Free Report) , VanEck Semiconductor ETF (SMH - Free Report) , iShares U.S. Technology ETF (IYW - Free Report) and State Street Technology Select Sector SPDR ETF (XLK - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Buy These ETFs as NVIDIA Posts Record Q1 Revenues, Beats on Earnings
Shares of NVIDIA slipped around 1.6% in after-hours trading on May 20, 2026 (as cited in BBC), as investors appeared unimpressed despite the AI giant delivering better-than-expected first-quarter fiscal 2027 results. The company also unveiled a sharp increase in its quarterly dividend to 25 cents per share.
As NVDA continues to lead the AI landscape and hold its position as the world’s most valuable company by market value, this pullback in its share price might entice investors to increase their exposure in this stock right away.
NVIDIA is entirely dependent on Taiwan Semiconductor (TSM) to physically fabricate its Blackwell and upcoming Rubin architecture chips. Any escalation in geopolitical tensions surrounding Taiwan could instantly paralyze Nvidia's supply chain.
Nevertheless, the company is undoubtedly a central player in the AI industry, with its short-term average price target of $276.46 implying a solid 23.7% upside from the last closing price of $223.47.
Against this backdrop, investors seeking to capitalize on the AI giant’s strong price momentum while mitigating company-specific risks may consider adding exchange-traded funds (ETFs) with significant exposure to NVDA to their portfolios.
But before diving into these ETFs, let us check NVDA’s overall performance in the first quarter of fiscal 2027, in terms of other metrics.
NVDA’s Q1 Results
NVIDIA’s fiscal first-quarter earnings beat the Zacks consensus estimate by 5.7%, while its revenues beat the consensus mark by 3.6%. The company posted record revenues worth $81.6 billion, which surged 85% year over year.
Its data Center revenues went up 92% year over year, driven by sustained strength in Blackwell architecture and strong demand for its GB300NVL72.
NVIDIA AI infrastructure is now deployed across nearly 40 countries, representing $50 trillion in GDP, backed by the accelerating build-out of AI factories. The company’s physical AI is also gaining momentum, with this business having exceeded $9 billion in revenues over the past 12 months.
In terms of meaningful collaborations, NVIDIA expanded its alliance with Google Cloud to advance agentic and physical AI, including new NVIDIA Vera Rubin-powered A5X instances and a preview of Google Gemini models on Google Distributed Cloud running on NVIDIA Blackwell and Blackwell Ultra GPUs.
The company also enhanced its partnership with Hyundai Motor Company and Kia for next-generation autonomous driving built on the NVIDIA DRIVE Hyperion platform.
On the innovation front, the company unveiled the NVIDIA Vera Rubin platform, including the NVIDIA Vera CPU, the world’s first processor purpose-built for agentic AI, and NVIDIA BlueField-4 STX, an accelerated storage infrastructure for agentic AI factories, during the fiscal first quarter.
The company is on track to commence production shipments of Vera Rubin in the second half of this year, starting in the third quarter. By integrating seven purpose-built chips across five accelerated racks, Vera Rubin will deliver up to 35x higher inference throughput and up to 10x greater AI factory revenues compared with Blackwell.
It also expanded its partnership with Uber to launch a fleet of autonomous vehicles powered by full-stack NVIDIA DRIVE AV software. Looking ahead, NVDA expects its partnership with Uber to power the robotaxi fleet across nearly 30 cities and four continents by 2028.
NVDA-Heavy ETFs to Buy
Fidelity MSCI Information Technology Index ETF
This fund, with net assets worth $17.89 billion, offers exposure to 286 information technology stocks. Of these, NVDA holds the first position in this fund, with 18.83% weightage.
FTEC has escalated 25.8% year to date. The fund charges 8 basis points (bps) in fees and traded at a volume of 0.23 million shares in the last trading session. It sports a Zacks ETF Rank #1 (Strong Buy).
Vanguard Information Technology Index Fund ETF Shares
This fund, with net assets worth $124.9 billion, offers exposure to 316 companies in three general areas: technology software and services, technology hardware and equipment, and semiconductor and semiconductor equipment manufacturers. NVDA holds the first position in this fund, with 18.59% weightage.
VGT has risen 21.5% year to date. The fund charges 9 bps in fees and traded at a good volume of 3.67 million shares in the last trading session. It sports a Zacks ETF Rank #1.
VanEck Semiconductor ETF
This fund, with net assets worth $64.87 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the first position in this fund, with 16.70% weightage.
SMH has surged 57.7% year to date. The fund charges 35 bps in fees and traded at a good volume of 8.29 million shares in the last trading session. It sports a Zacks ETF Rank #1.
iShares U.S. Technology ETF
This fund, with net assets worth $23.76 billion, offers exposure to 139 software, semiconductors, and tech hardware companies in the United States. NVDA holds the first position in this fund, with 16.57% weightage.
IYW has risen 20.2% year to date. The fund charges 38 bps as fees and traded at a good volume of 1.03 million shares in the last trading session. It sports a Zacks ETF Rank #1.
State Street Technology Select Sector SPDR ETF
This fund, with net assets worth $115.5 billion, offers exposure to 73 companies from technology hardware, storage and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components industries. NVDA holds the first position in this fund, with 14.54% weightage.
XLK has gained 24.1% year to date. The fund charges 8 bps in fees and traded at a good volume of 10.87 million shares in the last trading session. It sports a Zacks ETF Rank #1.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
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https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.