NVIDIA Gains Momentum Ahead of Q1 Earnings: ETFs in Focus

Core Viewpoint - NVIDIA is positioned as a leader in the AI chip market and is set to release its fiscal first-quarter 2026 results, with expectations of strong revenue and earnings growth driven by AI demand [1][10]. Company Performance - NVIDIA's stock has increased by 5.1% over the past three months, outperforming the industry growth of 3.5% [2] - The company reclaimed a market capitalization of $3 trillion earlier this month, indicating strong investor confidence [2]. - The Zacks Consensus Estimate anticipates a revenue growth of 39.3% and earnings growth of 63.9% for the fiscal first quarter [5]. Analyst Sentiment - NVIDIA has a Growth Score of A, indicating strong growth potential, with a recommendation average of 1.36 from 45 brokerage firms, where 82.22% of recommendations are Strong Buy [6]. - The average price target set by 42 analysts for NVIDIA is $167.00, with a range from $100.00 to $220.00 [7]. AI Market Leadership - NVIDIA controls between 80% and 95% of the global AI chip market, attributed to its advanced graphics processing units (GPUs) that power AI systems [8]. - The company is expected to launch a new AI chipset soon, with mass production anticipated to begin next month [9]. Future Outlook - CEO Jensen Huang expressed confidence in NVIDIA's future, highlighting strong demand for its Blackwell chip and a bullish revenue outlook for the upcoming quarter, projecting revenues of $43 billion, plus or minus 2% [10]. - NVIDIA's valuation metrics show a P/E ratio of 31.37, slightly below the industry average, and a PEG ratio of 1.27, indicating better value compared to the industry average of 2.10 [11]. ETFs and Investment Opportunities - Several ETFs with significant exposure to NVIDIA include Strive U.S. Semiconductor ETF (22.9%), VanEck Vectors Semiconductor ETF (21%), and others [3][12]. - Single-stock ETFs with 200% exposure to NVIDIA are available for investors seeking higher risk, such as T-REX 2X Long NVIDIA Daily Target ETF and GraniteShares 2x Long NVDA Daily ETF [12][13].