Nvidia ETFs Soar Following Strong Q1 Results

Nvidia ETFs Soar Following Strong Q1 Results

AI and semiconductor ETFs benefited.

sumit
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Senior ETF Analyst
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Reviewed by: etf.com Staff
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Edited by: James Rubin

AI chipmaker Nvidia jumped over 10% on Thursday, adding over $200 billion in market value and lifting many tech, AI, and semiconductor-focused exchange-traded funds after it reported stellar earnings for the first quarter. 

Nvidia reported top and bottom-line results that handily beat analyst estimates, while issuing guidance for the second quarter that was also better-than-expected.  

A full 504 U.S.-listed ETFs own Nvidia, according to etf.com’s stock holdings tool.  

That includes the AXS Esoterica NextG Economy ETF (WUGI) and the VanEck Semiconductor ETF (SMH), which allocate 27% and 21% of their portfolios, respectively, to the stock.  

The ETFs were trading up 2% to 3% midday, a strong showing on a day in which the SPDR S&P 500 ETF Trust (SPY) was close to unchanged. 

Better still was the whopping 21% gain for the GraniteShares 2x Long NVDA Daily ETF (NVDL), a volatile single-stock ETF tied to Nvidia stock.  

Since the start of the year, Nvidia is up 111%, while NVDL is higher by 248%. 

Strong Results  

Nvidia reported earnings per share of $6.12 on revenues of $26 billion for the first quarter. That compares to the $5.65 and $24.7 billion that analysts were expecting. 

Revenue guidance for Q2 was $28 billion, ahead of the $26.8 billion that analysts had penciled in before the report. 

The company also announced that it would split its stock 10-for-1 and that it would increase its quarterly dividend by $0.04 per share to $0.10. 

Investors were relieved that Nvidia’s growth remained strong ahead of the launch of its next generation of AI chips. 

There was some worry that the transition period could result in a deceleration in the company’s growth as Nvidia’s customers geared up to purchase the new Blackwell chips later this year.  

Instead, demand for Nvidia’s current line-up of Hopper chips remained extremely robust. 

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.