ETFs To Watch Post Stellar Q2 Earnings From Nvidia

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

Earnings per share came in at $1.67, beating the Zacks Consensus Estimate of $1.63 and improving from year-ago earnings of $1.24. Revenues grew 50% year over year to $3.87 billion and outpaced the consensus mark of $3.65 billion. The strong results were driven by a surge in data center business, which exceeded gaming for the first time this quarter. Video gaming and other big business is also on the rise and will take center stage next quarter. In fact, data center sales surged 167% to $1.75 billion and gaming revenues rose 26% year over year.

Nvidia provided revenue guidance for the fiscal third quarter of $4.40 billion (+/-2%). This is above the Zacks Consensus Estimate of $3.65 billion.

Despite robust results and an upbeat guidance, shares of NVIDIA fell as much as 2% in after-hours trading on elevated volume. The stock currently has a Zacks Rank #2 (Buy) and a VGM Score of F. It falls within a favorable Zacks industry (placed at the top 12% 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 31 stocks in its basket with NVIDIA occupying the top spot holding 9%. The ETF has AUM of $1.7 billion and average daily volume of 788,000 shares. It charges 68 bps in annual fees.

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