NVIDIA's Stellar Earnings Boost Semiconductor ETFs

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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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision