Nvidia ETFs to Tap for More Growth Post Blowout Q4 Earnings
Nvidia NVDA reported blockbuster fourth-quarter fiscal 2024 results, demonstrating robust growth with new records for revenues and earnings. It topped both earnings and revenue estimates and offered a bullish revenue outlook for the current quarter, thanks to the solid demand for its artificial intelligence (AI) accelerators — highly prized chips that crunch data for AI models.
Nvidia shares jumped as much as 11% in after-market trading on blowout results, adding more than $129 billion in market capitalization. Investors could tap the robust growth with the help of ETFs having the largest allocation to NVIDIA. These include VanEck Vectors Semiconductor ETF SMH, AXS Esoterica NextG Economy ETF WUGI, Global X Robotics & Artificial Intelligence ETF BOTZ, MeetKevin Pricing Power ETF PP and Pacer Data and Digital Revolution ETF TRFK.
Nvidia Earnings in Focus
Earnings per share came in at $5.16, easily surpassing the Zacks Consensus Estimate of $4.55 and up a staggering 486% from the year-ago quarter. Revenues spiked 265% year over year to a record $22.1 billion and edged past the consensus mark of $20.31 billion.
The growth was powered by record revenues in Data Center, which soared a massive 409% year over year to $18.4 billion. Increasing demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer Internet companies are the major catalysts driving Data Center revenues. Meanwhile, gaming revenues rose 56% year over year to $2.9 billion.
Nvidia has been the biggest beneficiary of technology companies' race to build AI into their products and services. Nvidia founder and CEO Jensen Huang said that “accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations.”
For the first quarter of fiscal 2025, the graphics chipmaker expects revenues of around $24 billion, indicating growth of 234% year over year. This is much higher than the Zacks Consensus Estimate of $21.48 billion. 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 expects growth to continue in 2025 and beyond (read: Nvidia Overtakes Amazon in Market Value: ETFs to Tap).
ETFs to Tap
Let’s delve into each ETF below:
VanEck Vectors Semiconductor ETF (SMH)
VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It 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 24.2%.
VanEck Vectors Semiconductor ETF has managed assets worth $14.8 billion and charges 35 bps in annual fees and expenses. SMH trades in average daily volume of 7.4 million shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: 5 Sector ETFs Beating the Market Halfway Through Q1).
AXS Esoterica NextG Economy ETF (WUGI)
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 34 stocks in the basket, with Nvidia occupying the top position at 23.2%.
AXS Esoterica NextG Economy ETF has accumulated $29.5 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 2,000 shares a day on average.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
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 in industrial robotics and automation, non-industrial robots and autonomous vehicles.
Global X Robotics & Artificial Intelligence ETF has 42 stocks in its basket, with Nvidia occupying the top spot with an 18.9% share. The ETF has AUM of $2.5 billion and charges 69 bps in annual fees. It trades in an average daily volume of 1.2 million shares.
MeetKevin Pricing Power ETF (PP)
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in U.S.-listed equity securities of Innovative Companies, which, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 16 stocks, with Nvidia occupying the third position at 10.2%.
MeetKevin Pricing Power ETF has accumulated $41.9 million in its asset base and trades in average daily volume of 12,000 shares. It charges 77 bps in annual fees (read: Tesla Slumps on Q4 Earnings Miss and Soft Outlook: ETFs in Focus).
Pacer Data and Digital Revolution ETF (TRFK)
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 79 stocks in its basket. Out of these, Nvidia is the top firm, accounting for a 9.9% share.
Pacer Data and Digital Revolution ETF has accumulated $20.7 million in its asset base and in average daily volume of 9,000 shares. It has an expense ratio of 0.60%.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
The Meet Kevin Pricing Power ETF (PP): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports
