ETFs Brace for Nvidia's Big Earnings Report

The last of the Magnificent Seven is set to report earnings this week, and there is a lot riding on the outcome.

Nvidia, the AI chip giant that has powered tech stocks to enormous gains this year, is set to report its latest earnings results after the bell on Wednesday.

The company is expected to announce that it earned $0.74 per share on $33.2 billion of revenue during Q3, according to Bloomberg’s consensus of analyst estimates.

However, investors will likely be looking for Nvidia to handily exceed those numbers. During the last five quarters, Nvidia earnings have topped analyst revenue estimates by anywhere from $1.2 billion to $2.5 billion.

For a stock that’s nearly tripled this year, a beat of a similar magnitude is likely a requirement if investors are to be rewarded with even larger gains. 

Guidance for Q4 is also crucial; analysts currently expect revenues of $37.1 billion for the final quarter of the year, but investors are likely betting that Nvidia will forecast a figure that’s well above that. 

Nvidia Earnings & Big Weightings in ETFs

Given that pretty much everyone is a big investor in Nvidia these days—the stock has a 7% weighting in the S&P 500 and is the world’s largest publicly traded company by market cap—there is a lot riding on this week’s earnings report. 

For investors who hold more concentrated positions in the stock, the stakes are even higher. Nvidia has a 9% weighting in the Invesco QQQ Trust (QQQ) and a 24% weighting in the VanEck Semiconductor ETF (SMH).

And of course, investors in the GraniteShares 2x Long NVDA Daily ETF (NVDL)—which has nearly $6 billion in assets under management—are the most levered to the stock of all. 

In addition to Nvidia’s earnings results and guidance, investors will key in on the company management’s commentary on the ramp-up in sales of its newest Blackwell line of AI chips.

Companies including OpenAI, Meta, and others are counting on the chips to power their next generation of powerful AI models.