NVIDIA's Soaring Performance Lifts Market，AI and Semiconductor ETFs Rally

ETF Tracker02-24

Impressive Financial Performance and Its Impact on the Semiconductor Market

NVIDIA (NVDA), a top US chip designer, exceeded Wall Street's fourth-quarter earnings and revenue expectations, signaling a strong position in the AI chip market and promising prospects for the semiconductor industry post-2025.

Investor sentiment was buoyant:

  • Key supplier Taiwan Semiconductor Manufacturing Company (TSMC) saw a 2% stock price increase, while Super Micro Computer, Inc. (SMCI) witnessed a substantial 32.87% surge. Competitors AMD and Arm Holdings (ARM) also experienced stock price gains of 10.69% and 4.17%, respectively.

NVIDIA's stock soared by 16.4% in after-hours trading, showcasing rising demand for its Graphics Processing Units (GPUs) crucial for AI applications like OpenAI's ChatGPT.

This optimism extended to Korean memory chip manufacturers Samsung Electronics and SK Hynix, with significant increases in their stock prices, along with Taiwanese semiconductor companies Taiwan Semiconductor Electronic and MediaTek, and American chip manufacturers Broadcom (AVGO) and Qualcomm (QCOM).

During the earnings call, NVIDIA CEO Jensen Huang emphasized persistent GPU demand amid industry shifts toward specialized accelerators. Analysts foresee potential market outperformance and profit margin expansion for NVIDIA.

This update underscores NVIDIA's pivotal role in AI and semiconductors, signaling broader industry growth and innovation.

This bullish sentiment also affected ETFs, benefiting those involved in AI and semiconductors. Let's explore five NVIDIA-exposed ETFs:

  1. VanEck Vectors Semiconductor ETF (SMH)

    • Assets: $14.8 billion

    • Expense Ratio: 0.35%

    • Daily Trading Volume: 7.4 million shares

  2. iShares Semiconductor ETF (SOXX)

    • Assets: $11.9 billion

    • Expense Ratio: 0.35%

    • Daily Trading Volume: 963,000 shares

  3. SPDR S&P Semiconductor ETF (XSD)

    • Assets: $1.4 billion

    • Expense Ratio: 0.35%

    • Daily Trading Volume: Lower, indicating the need for caution.

  4. Global X Robotics & Artificial Intelligence ETF (BOTZ)

    • Expense Ratio: 0.69%

    • Daily Trading Volume: 1.2 million shares

  5. ARK Autonomous Technology & Robotics ETF (ARKQ)

    • Expense Ratio: 0.75%

    • Daily Trading Volume: Lower, requiring attention to liquidity issues.

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