Analysts Expect More Than 10% Increase in Nvidia (NVDA) Before Q2 Earnings; Here’s a Safe Way to Invest

Nvidia’s Upcoming Earnings: What Investors Should Know

Nvidia (NVDA) is set to announce its revenue for the fiscal quarter on August 27th, and there’s a wave of optimism on Wall Street. Leading analysts from Wedbush, Evercore ISI, and KeyBanc have reiterated their buy ratings and increased their target prices. This could be a good moment for investors to consider buying in, especially through exchange-traded funds (ETFs), which offer diversified exposure to NVDA without the direct risks of holding the stock.

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Nvidia anticipates reporting second-quarter revenues around $45.94 billion, with earnings per share hitting $1.00. This indicates an impressive 53% rise in revenue and a 47% increase in year-over-year earnings per share, primarily fueled by heightened demand from major players like Meta, Alphabet, and Microsoft.

For investors interested in NVDA stocks, the Vaneck Semiconductor ETF (SMH) and the iShares Global Tech ETF (IXN) are worth considering. Let’s take a closer look at these two ETFs.

Vaneck Semiconductor ETF

The SMH ETF tracks the performance of the MVIS US listed semiconductor 25 indexes, featuring companies that engage in semiconductor production and related equipment. It includes giants like Taiwan Semiconductor Manufacturing, Broadcom, and Advanced Micro Devices. Notably, Nvidia makes up 22.13% of the ETF’s total holdings.

Currently, the ETF manages $265.6 billion in assets. Its expense ratio stands at 0.35%. Over the last three months, SMH ETFs returned 19.87%.

According to TipRanks, SMH holds a strong buy consensus based on 22 buy ratings and four holds within the last three months. The average price target of $325 suggests an upside potential of 10.68%.

iShares Global Tech ETF

The IXN ETF aims to give investors access to leading global tech companies. It tracks the S&P Global 1200 Information Technology Index, covering sectors ranging from software and hardware to semiconductors and IT services.

Nvidia shares account for 19.87% of the IXN ETF’s holdings. Other top stocks in this ETF include Microsoft and Apple, alongside Oracle. The fund has a total of $5.68 billion in assets and an expense ratio of 0.39%. Over the past three months, it achieved a return of 12.14%.

This ETF also boasts a moderate buy consensus. Of its 120 holdings, 87 are buy ratings while 33 are holds. With a price target of $108.63, it indicates an upside potential of 13.35%.

Conclusion

Investing in ETFs offers a way to gain indirect exposure to Nvidia stocks while minimizing the risks associated with direct stock investments. They are also a straightforward and liquid option for engaging in the market. For those looking for ETF strategies, IXN and SMH present solid choices, with both providing exposure to Nvidia.