Four ETFs to Watch Ahead of Nvidia's Earnings Report

For investors who do not directly hold NVIDIA Corp., Wednesday's earnings report could still impact their portfolios.

Nvidia is a major holding in semiconductor and technology ETFs, and its guidance on AI infrastructure spending outlook carries significant weight for these funds.

• NVIDIA stock is trending upward. Why is NVDA's share price rising?

The VanEck Semiconductor ETF is one of the most direct ETF beneficiaries of Nvidia's AI momentum, while the iShares Semiconductor ETF offers another broad way to capture a read on the chipmaker's performance.

Investors seeking broader technology exposure can look to the Invesco QQQ, where Nvidia is a major component of the Nasdaq 100 Index. Meanwhile, the Global X Robotics & Artificial Intelligence ETF provides a wider investment opportunity in AI adoption and automation.

The August 26 earnings release comes at a critical juncture in the AI investment cycle, as hyperscale data center operators continue to increase computing infrastructure spending. Beyond the headline revenue and earnings numbers, investors will focus on Blackwell demand, gross margins, China shipments, and management commentary on rising memory costs.

Four ETFs Worth Watching

SMH offers the most direct ETF route into Nvidia and the semiconductor ecosystem benefiting from AI infrastructure spending. Nvidia's results could also influence market sentiment toward other major chip holdings within the fund.

SOXX provides diversified exposure to semiconductor stocks and is another key tool for investors assessing the impact of Nvidia's results on the broader industry.

Nvidia's influence extends beyond the semiconductor space. As a major component of the Nasdaq 100, its earnings report could have a meaningful impact on the tech-heavy QQQ.

BOTZ offers a broader AI and automation angle, providing exposure to companies expected to benefit from expanding AI adoption.

Why Nvidia's Results Matter

Nvidia expects fiscal second-quarter revenue of $91 billion, plus or minus 2%, compared to a consensus estimate of $91.9 billion. This would represent roughly 96.5% year-over-year growth.

The data center business will be closely watched, as first-quarter revenue surged 92% to $75.2 billion. Blackwell remains the company's primary growth engine, with management stating the platform has been adopted by major hyperscale data center operators, cloud service providers, and leading AI model developers.

Nvidia also expects combined Blackwell and Rubin revenue of approximately $1 trillion between 2025 and 2027.

New Growth Drivers — and Risks

Nvidia is expanding its reach through its Vera CPU platform and estimates the server CPU market at roughly $200 billion. The company expects its CPU business to generate about $20 billion in revenue this year.

China represents another potential opportunity. JPMorgan estimates that every 100,000 H200 units shipped to China could generate approximately $3 billion in revenue.

Meanwhile, investors will watch rising memory costs and potential pricing changes. Nvidia is reportedly considering price increases of more than 15% on certain systems shipping early next year, which could help offset higher costs and support gross margins.

With Nvidia's results rippling across multiple ETF portfolios, the August 26 earnings report will provide investors with a fresh read on the pace and durability of the AI infrastructure boom.

Some Technical Levels to Note

With the current price sitting above key technical levels, Nvidia appears well positioned. The stock is trading roughly 2% above its recent average price, indicating that momentum is building and investors are willing to pay a premium for the shares.

This upward movement could attract further buying interest, especially if the stock can hold above $210.

Tuesday's volume report of 55.4 million shares reflects strong trading activity. High volume accompanying a price rise typically indicates strong conviction among buyers, which could lead to further upside movement in the near term. If this trend continues, it may suggest the stock is gaining traction and could challenge its recent highs. This, in turn, could also be favorable for ETFs.

On a broader technical basis, Nvidia's 52-week range of $164.07 to $236.54 highlights the stock's volatility and potential for significant price swings. The current price sits well above the lower end of that range, indicating the stock has established a solid base to bounce from. Resistance may be encountered near the recent high of $214.73, and a break above that level could pave the way for a test of the upper boundary of the 52-week range.

Overall market sentiment around Nvidia remains positive, driven by strong fundamentals and a favorable outlook for the semiconductor industry.