<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What’s Behind the Rally?” data-reactid=”20″>What’s Behind the Rally?
Solid demand for graphics chips in data centers and solid presence in the gaming market have powered the rally this year. In just five years, Nvidia’s data center business has grown from $300 million in annual revenues to almost $3 billion, per an article from DataCenter Knowledge. Nvidia shares are up 78.7% this year versus a decline of 2.4% in the S&P 500 and Intel shares each.
Susquehanna analyst Christopher Rolland raised his price target for Nvidia shares to $450 from $420, as he sees Mellanox, which Nvidia acquired earlier this year, growing at a double-digit rate over the next three to five years. He estimated that Mellanox could inject $30 billion to Nvidia’s market cap (read: “Merger Monday” to Benefit These ETFs).
Nvidia’s data center segment skyrocketed 80% year over year and surpassed $1 billion in sales for the first time in the first quarter. The company’s presence in the gaming zone is also a positive. Nvidia reported a 50% rise in gaming hours played on its GeForce platform and strong e-tail sales of gaming laptops and hardware, which made up for the impact of store closures amid lockdowns.
Gaming is now hot amid social distancing triggered by coronavirus. An analyst at BofA Securities believes that the gaming boom will make Nvidia a winner in the second half, especially ahead of the launch of new Microsoft and Sony consoles (read: Video Gaming ETFs to Continue Gaining Amid Coronavirus Crisis).
“Nvidia’s share of Steam gamers remained unchanged month-over-month at 73.5%, and the installed base penetration of Turing cards grew 212 basis points from last month and was up six times since last 73.7May,” per the analyst from BofA Securities.
Nvidia has solid presence in the automotive vehicle market too. Recently, NVIDIA and Mercedes-Benz announced an agreement under which Mercedes-Benz will be deploying NVIDIA’s new DRIVE platform technologies as standard equipment in all vehicles, starting in 2024.
Against this backdrop, investors can bet big on Nvidia-heavy ETFs to score smart gains. In any case, most of these ETFs come from the soaring tech sector. The ETF options are given below. We also highlight Nvidia’s weights in the fund.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="ETFs in Focus” data-reactid=”28″>ETFs in Focus
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="VanEck Vectors Semiconductor ETF (SMH) – 8.64%” data-reactid=”29″>VanEck Vectors Semiconductor ETF (SMH) – 8.64%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MicroSectors FANG+ ETN (FNGS) – 8.55%” data-reactid=”30″>MicroSectors FANG+ ETN (FNGS) – 8.55%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) – 8.05%” data-reactid=”31″>Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) – 8.05%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="VanEck Vectors Video Gaming and eSports ETF (ESPO) – 7.72%” data-reactid=”32″>VanEck Vectors Video Gaming and eSports ETF (ESPO) – 7.72%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="IBD Breakout Opportunities ETF (BOUT) – 7.13%” data-reactid=”33″>IBD Breakout Opportunities ETF (BOUT) – 7.13%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Pacer BioThreat Strategy ETF (VIRS) – 6.83%” data-reactid=”34″>Pacer BioThreat Strategy ETF (VIRS) – 6.83%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Global X Video Games & Esports ETF (HERO) – 6.81%” data-reactid=”35″>Global X Video Games & Esports ETF (HERO) – 6.81%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Want key ETF info delivered straight to your inbox?” data-reactid=”36″>Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Want 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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Global X Video Games Esports ETF (HERO): ETF Research Reports
VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports
Global X Robotics Artificial Intelligence ETF (BOTZ): ETF Research Reports
Innovator IBD Breakout Opportunities ETF (BOUT): ETF Research Reports
VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF Research Reports
MICRSFANG (FNGS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want 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” data-reactid=”38″>
Want 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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Global X Video Games Esports ETF (HERO): ETF Research Reports
VanEck Vectors Semiconductor ETF (SMH): ETF Research Reports
Global X Robotics Artificial Intelligence ETF (BOTZ): ETF Research Reports
Innovator IBD Breakout Opportunities ETF (BOUT): ETF Research Reports
VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF Research Reports
MICRSFANG (FNGS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want 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
Add Comment