Forget Guidance Woes: Buy Semiconductor ETFs on NVDA's Dip

Zacks11-21 21:00

The chip behemoth NVIDIA NVDA once again posted a beat-and-raise quarter thanks to the ongoing artificial-intelligence (AI) boom, but its stock was down about 2.5% in Wednesday's extended session due ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2485936492?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/TveVr_uoxLbjHNbKvHuExw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/223c1bf0adeeecfbad6b0a5d960e0765","is_english":true,"pubTime":"2024-11-21 21:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2485936492","market":"us","top_or_hot":-1,"title":"Forget Guidance Woes: Buy Semiconductor ETFs on NVDA's Dip","media":"Zacks","content":"<div>\n<p>The chip behemoth NVIDIA NVDA once again posted a beat-and-raise quarter thanks to the ongoing artificial-intelligence (AI) boom, but its stock was down about 2.5% in Wednesday's extended session due ...</p>\n\n<a href=\"https://finance.yahoo.com/news/forget-guidance-woes-buy-semiconductor-130000456.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Forget Guidance Woes: Buy Semiconductor ETFs on NVDA's Dip</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nForget Guidance Woes: Buy Semiconductor ETFs on NVDA's Dip\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-21 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/forget-guidance-woes-buy-semiconductor-130000456.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The chip behemoth NVIDIA NVDA once again posted a beat-and-raise quarter thanks to the ongoing artificial-intelligence (AI) boom, but its stock was down about 2.5% in Wednesday's extended session due ...</p>\n\n<a href=\"https://finance.yahoo.com/news/forget-guidance-woes-buy-semiconductor-130000456.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0234572021.USD","symbol_name":"高盛美国核心股票组合Acc","start_time":0,"source_url":"https://finance.yahoo.com/news/forget-guidance-woes-buy-semiconductor-130000456.html","article_id":"2485936492","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/TveVr_uoxLbjHNbKvHuExw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/223c1bf0adeeecfbad6b0a5d960e0765"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485936492","pubTimestamp":1732194000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The chip behemoth NVIDIA NVDA once again posted a beat-and-raise quarter thanks to the ongoing artificial-intelligence  boom, but its stock was down about 2.5% in Wednesday's extended session due to the issuance of a less lofty guidance. NVIDIA failed to top expectations with its guidance by the same magnitude as before.Nvidia's $37.5 billion revenue forecast for the January quarter topped the consensus view of $37.1 billion. But \"whisper\" numbers on the buy side were perhaps more in the $39 billion to $40 billion range, as quoted on MarketWatch. For five consecutive quarters leading up to the last two reports, NVIDIA's revenue guidance surpassed estimates by well over $1 billion each time.This news is exciting for investors, but given the nearly 200% increase in Nvidia shares this year, Wall Street may have been expecting a bit more optimism from NVIDIA. Investors should also note that while AI innovations will continue, they tend to be incremental and modera","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0234572021.USD":"高盛美国核心股票组合Acc","NVDD":"Direxion Daily NVDA Bear 1X Shares","LU0081259029.USD":"UBS (LUX) EQUITY FUND - TECH OPPORTUNITY \"P\" (USD) ACC","LU1323610961.USD":"UBS (LUX) EQUITY SICAV - LONG TERM THEMES (USD) \"P\" (USD) ACC","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","SNVD.UK":"LS -1X NVIDIA","NVD2.UK":"2X NVIDIA ETP","LU2077746001.SGD":"Blackrock ESG Multi-Asset A2 SGD-H","FDN":"First Trust Dow Jones Internet I","NVD3.UK":"LS 3X NVIDIA","LU0689626769.HKD":"AB SICAV I - SUSTAINABLE US THEMATIC PORTFOLIO \"A\" (HKD) ACC","LU2361044865.SGD":"WELLINGTON US QUALITY GROWTH \"A\" (SGDHDG) ACC","NVDS":"Tradr 1.5X Short NVDA Daily ETF","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","NVDS.UK":"LS -1X NVIDIA","LU2505996681.GBP":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (GBPHDG) INC","NVDU":"Direxion Daily NVDA Bull 2X Shares","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","NVDA":"英伟达","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","LU1778281490.HKD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (HKD) INC","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","BK4551":"寇图资本持仓","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","HK0000320223.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) ACC","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","SMH":"半导体指数ETF-HOLDRs","2NVD.UK":"2X NVIDIA ETP","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU2458330169.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","BK4529":"IDC概念","LU0265550946.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A5\" (USD) INC","SHOC":"Strive U.S. Semiconductor ETF","XLK":"高科技指数ETF-SPDR","LU0444973449.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"DU\" (USD) ACC","LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","3NVD.UK":"LS 3X NVIDIA","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","NVD":"GraniteShares 2x Short NVDA Daily ETF","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC"},"translate_title":"忘记指引困境：在NVDA下跌时购买半导体ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XLK":1,"NVDA":1,"SHOC":1,"SMH":1,"FDN":0.9,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDD":0.6,"NVDS":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"SNVD.UK":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"The chip behemoth NVIDIA NVDA once again posted a beat-and-raise quarter thanks to the ongoing artificial-intelligence (AI) boom, but its stock was down about 2.5% in Wednesday's extended session due to the issuance of a less lofty guidance. NVIDIA failed to top expectations with its guidance by the same magnitude as before.\nNvidia's $37.5 billion revenue forecast for the January quarter topped the consensus view of $37.1 billion. But \"whisper\" numbers on the buy side were perhaps more in the $39 billion to $40 billion range, as quoted on MarketWatch. For five consecutive quarters leading up to the last two reports, NVIDIA's revenue guidance surpassed estimates by well over $1 billion each time.\nThe latest guidance indicates year-over-year growth of about 70%, down from the 265% annual growth recorded during the same period last year. However, the company remains optimistic about its sales outlook, due to skyrocketing demand for its graphics processing units, which play a crucial role in the fast-expanding AI industry.\nSlowing Sales Momentum is Natural in a Maturing Industry \nNVIDIA posted revenue of $35.08 billion for the quarter ending October 27, marking a remarkable 94% year-over-year increase. Net income soared to $19.31 billion, more than doubling from $9.24 billion a year ago. Adjusted earnings per share came in at 81 cents, topping the Zacks Consensus Estimate of 75 cents, based on expected revenues of $33.21 billion.\nThe guidance suggests slower growth, with the January 2025 quarter expected to show about 67% growth. For the full fiscal year 2025, NVIDIA’s sales are expected to jump more than 100%, while revenue growth is forecast to slow to 44.75% for the fiscal year ending January 2026.\nEarnings per share growth is also likely to exceed 100% in the current fiscal year, but is expected to fall to 37.69% in the next fiscal year. This deceleration is natural, as slowing sales momentum in a maturing industry is a typical phenomenon driven by factors such as market saturation, rising competition, diminishing innovation cycles, and shifts in consumer preferences.\nForget Growth Slowdown: AI Boom in Fine Fettle\nWe expect the AI boom to remain strong in the next few quarters. Investors are closely watching NVIDIA’s Blackwell ramp. The next-generation AI chip, Blackwell, has demand from companies like OpenAI and others building AI data centers. NVIDIA also plans to address concerns about delays in Blackwell chip shipments.\nShipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026. However, both the Hopper GPU and Blackwell systems currently face supply constraints, which may persist for several quarters into fiscal 2026.\nThis news is exciting for investors, but given the nearly 200% increase in Nvidia shares this year, Wall Street may have been expecting a bit more optimism from NVIDIA. Investors should also note that while AI innovations will continue, they tend to be incremental and moderate rather than groundbreaking. Rising competition is the most crucial factor in the space, and margin compression is likely in such scenarios.\nWhat to Expect Ahead from NVIDIA? \nNVIDIA's winning momentum is likely to continue, but its rapid growth may slow down for valid and expected reasons. Another boost in its share price is anticipated next year when more updates on Blackwell's demand and supply become available.\nAs for valuation, NVDA shares are not excessively pricey at present. Last year, NVIDIA shares traded at a price-to-earnings (P/E) ratio of 122.17x, but currently, the stock is trading at a P/E of 51.52x for the current fiscal year. The valuation for the next fiscal year is even more attractive, with NVDA shares trading at a forward P/E of 37.6x.\nImage Source: Zacks Investment Research\nImage Source: Zacks Investment Research\nNVIDIA-Heavy Semiconductor ETFs in Focus \nIf you're unnerved about NVIDIA’s sales slowdown, you can opt for the exchange-traded fund (ETF) route to minimize the company-specific concentration risks while remaining bullish on the current AI boom. NVIDIA-heavy ETFs include T-REX 2X Long NVIDIA Daily Target ETF NVDX, Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, Grizzle Growth ETF DARP and Technology Select Sector SPDR Fund XLK.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nNVIDIA Corporation (NVDA) : Free Stock Analysis Report\nTechnology Select Sector SPDR ETF (XLK): ETF Research Reports\nVanEck Semiconductor ETF (SMH): ETF Research Reports\nStrive U.S. Semiconductor ETF (SHOC): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485936492"}