NVIDIA’s Stellar Earnings Boost Semiconductor ETFs

NVIDIA (NASDAQ:) Shares Skyrocket

NVIDIA has been at the forefront of benefiting from surging demand for artificial intelligence (AI) technologies in 2023. The chip giant has not only maintained but substantially amplified its momentum in early 2024. After a stellar performance of almost 240% last year, NVIDIA shares showed a year-to-date gain of 59.16%. This surge underscores NVIDIA’s pivotal role in the evolving tech landscape.

Earnings Report Exceeds Expectations

NVIDIA unveiled its Q4 earnings this week, shattering analyst expectations with a revenue leap to $22.1 billion, marking a 265% increase year-over-year. More impressively, its net income skyrocketed by 769% Y/Y, reaching $12.285 billion.

NVIDIA’s stock (NVDA) finished the week with a gain of 8.54%, bringing its year-to-date performance to 59.16% and propelling its market cap to $2 trillion. This is the fifth company to attain this milestone.

Interested in a deep dive into NVIDIA’s results? Read Nvidia’s Q4 Performance: Strong Company Growth and Stock Valuation Risk

This surge lifted not only the IT sector, which increased by 1.97% week-over-week but also influenced broad-based indices due to the significant weight of big tech.

Semiconductor ETFs Shine Again

Specifically, the semiconductor ETFs, buoyed by NVIDIA’s performance, climbed by 2.38% over the week while other tech-related themes such as Next Generation Internet and Cybersecurity experienced downturns, closing the week with losses of 2.31% and 3.03% respectively.

Notably the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) have largely benefited from the rebound of Nvidia’s shares. The latter account for 19.4% of the SMH ETF portfolio and 7.53% of the SOXX ETF portfolio. These funds gained 3.38% and 1.83% respectively over the week. Such performance highlights the critical role NVIDIA’s growth and sector-wide optimism play in influencing the trajectory of semiconductor ETFs.

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This content was originally published by our partners at ETF Central.