Nvidia Likely to Beat on Q4 Earnings: 5 ETFs to Tap

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Investors’ favorite Nvidia (NASDAQ: NVDA) is set to release its fourth-quarter fiscal 2024 results on Feb 21, after market close. The world’s most valuable semiconductor company has been on the hottest winning streak, fueled by the artificial intelligence (NYSE: AI) frenzy and analysts’ bullish view. After the biggest monthly increase ever in market value in January, Nvidia overtook Amazon AMZN at $1.78 trillion and became the fourth-most valuable company in the United States (read: Nvidia Overtakes Amazon in Market Value: ETFs to Tap).

The outperformance is expected to continue, given higher chances of an earnings beat and positive earnings revisions. Given this, ETFs having the largest allocation to Nvidia could make compelling plays ahead of its earnings report. These include VanEck Vectors Semiconductor ETF SMH, AXS Esoterica NextG Economy ETF WUGI, Global X Robotics & Artificial Intelligence ETF BOTZ, MeetKevin Pricing Power ETF PP and Pacer Data and Digital Revolution ETF TRFK.

Earnings Whispers

Nvidia currently has a Zacks Rank #2 (Buy) and an Earnings ESP of +3.67%. According to our methodology, the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

This largest chipmaker saw a positive earnings estimate revision of 3 cents over the past seven days for the fourth quarter of fiscal 2024. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. Nvidia is expected to post massive earnings and revenue growth of 415.9% and 234%, respectively, for the to-be-reported quarter. Nvidia’s earnings surprise history is good, as it delivered an earnings surprise of 18.99%, on average, in the last …

Full story available on Benzinga.com


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