Nvidia Corp. (NASDAQ:NVDA) is slated to report earnings on Wednesday, which could have ripple effects on a broad range of exchange-traded funds (ETFs) with significant exposure to the chipmaker. This is especially true given the AI chipmaker’s strong weighting in the index funds and sector holdings.
Nvidia's Historic Rally
The AI chipmaker set a historic milestone, surpassing $5.5 trillion in market cap last week. The stock remains the largest publicly traded company and overtakes silver as the world’s second-largest asset by market value. Nvidia shares are up 20.8% since the start of this year and 66.2% over the past year.
Analysts expect Nvidia to report first-quarter revenue of $79.08 billion, up from $44.06 billion in the year-ago quarter, according to data from Benzinga Pro. The company beat analyst estimates for revenue in 14 straight quarters. Analysts expect first-quarter earnings per share of $1.76, up from $0.96 in the year-ago quarter.
Prediction market traders are increasingly bullish on the stock, with Polymarket data showing strong expectations that the AI chip giant’s stock could climb beyond $240 by the end of May.
Nvidia Earnings Could Move ETFs
As reported by ETF.com, Nvidia sits at the heart of the AI and data-center supply chain, and thus hundreds of ETFs include the stock among their top holdings.
Some ETFs having the largest allocation to the chipmaker include Global X PureCap MSCI Information Technology ETF (NYSE:GXPT), iShares ESG Advanced MSCI USA ETF (NASDAQ:USXF), Strive U.S. Semiconductor ETF (NYSE:SHOC) and Fidelity MSCI Information Technology Index ETF (NYSE:FTEC). All these funds have Nvidia as their top holding.
GXPT and FTEC offer exposure to the broad information technology sector while SHOC targets the semiconductor sector, which saw a sharp decline of 4% on Friday after a strong rally.
Meanwhile, USXF offers exposure to the U.S. large- and mid-cap equities with favorable environmental, social, and governance (ESG) ratings while applying extensive screens on controversial activities.
Apart from these, broad market ETFs such as SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust Series (NASDAQ:QQQ) also have Nvidia as the top holding, but with lower weightings.
Nvidia earnings can also shift sentiment in AI-themed and future-tech ETFs like Roundhill Generative AI & Technology ETF (NYSE:CHAT), Invesco AI and Next Gen Software ETF (NYSE:IGPT) and Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ). These funds might not have Nvidia as the top holding, but have substantial exposure to the AI chipmaker.
The table shows ETFs with exposure to Nvidia and their expense ratios:
| ETFs | Nvidia Exposure | Expense Ratio |
| GXPT | 22.93% | 0.15% |
| USXF | 21.01% | 0.10% |
| SHOC | 19.98% | 0.40% |
| FTEC | 18.83% | 0.08% |
| SPY | 8.90% | 0.09% |
| QQQ | 9.08% | 0.18% |
| CHAT | 7.10% | 0.75% |
| IGPT | 6.92% | 0.56% |
| AIQ | 3.17% | 0.68% |
Single-Stock ETFs
Single-stock ETFs, like GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL), Direxion Daily NVDA Bull 2X ETF (NASDAQ:NVDU), and Leverage Shares 2X Long NVDA Daily ETF (NASDAQ:NVDG) seek 200% exposure to Nvidia.
These funds are designed for short-term trading due to their magnifying risk exposure, according to the report.
Benzinga Edge Stock Rankings indicate that the NVDA has a Momentum score in the 87th percentile with a strong price trend in the short, medium and long term. It also has a solid Growth score in the 98th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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