ETFs In Focus Post Nvidia Q1 Earnings

Nvidia (NVDA - Free Report) reported solid first-quarter fiscal 2021 results after market close yesterday, wherein it outpaced the Zacks Consensus Estimate on earnings and revenues. However, the company offered a weak guidance for the ongoing quarter.

Earnings per share came in at $1.80, beating the Zacks Consensus Estimate of $1.69 and improving from year-ago earnings of 88 cents. Revenues grew 39% year over year to $3.108 billion and outpaced the consensus mark of $3 billion. The strong results were driven by a surge in data center business, mainly due to massive demand for its chips used in the data centers that power the shift to working remotely because of the new coronavirus outbreak.

In fact, data center sales topped $1 billion for the first time ever in the quarter, representing an 80% increase from the year-ago quarter. Also, gaming revenues rose 27% year over year.

Nvidia provided revenue guidance for the fiscal second quarter of $3.65 billion (+/-2%). This is below the Zacks Consensus Estimate of $3.37 billion.

As a result, shares of NVIDIA rose 0.4% in after-hours trading on elevated volume. The stock currently has a Zacks Rank #2 (Buy) and a VGM Score of B. It falls within a favorable Zacks industry (placed at the top 18% of 250+ industries).

ETFs to Watch

This has put ETFs with higher allocation to this graphics chipmaker in the spotlight. Below we have highlighted some of the funds:

Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)

This fund follows the Indxx Global Robotics & Artificial Intelligence Thematic Index, which seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and AI, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. It holds 40 stocks in its basket with NVIDIA occupying the top spot holding 13.2%. The ETF has AUM of $1.4 billion and average daily volume of 726,000 shares. It charges 68 bps in annual fees.

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