Nvidia ETFs Split In Pre-Market After Jensen Huang-Led Chip Giant Exceeds Q2 Expectations
Portfolio Pulse from Benzinga Neuro
Nvidia's recent earnings report, which exceeded expectations, led to mixed responses among ETFs associated with the company. While some ETFs like GraniteShares 2x Long NVDA Daily ETF and Direxion Daily NVDA Bull 2X Shares saw declines, others like T-Rex 2X Inverse NVIDIA Daily Target ETF and Direxion Daily Semiconductor Bull 3X Shares experienced gains. Nvidia's strong data center revenue was a highlight, but a contraction in gross margin led to a drop in Nvidia's shares in after-hours trading.
August 29, 2024 | 10:15 am
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POSITIVE IMPACT
T-Rex 2X Inverse NVIDIA Daily Target ETF rose 3.48% in pre-market trading after Nvidia's earnings report.
As an inverse ETF, it benefits from declines in Nvidia's stock, which occurred after the earnings report.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Direxion Daily Semiconductor Bull 3X Shares saw a 1.09% increase following Nvidia's earnings report.
The ETF's broader semiconductor focus may have benefited from Nvidia's strong data center revenue, despite the company's stock decline.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
iShares Semiconductor ETF increased by 0.57% after Nvidia's earnings report.
The ETF's performance may have been positively influenced by Nvidia's strong data center revenue, despite the company's stock decline.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Nvidia's Q2 earnings exceeded expectations, driven by strong data center revenue. However, a contraction in gross margin led to a 3.6% drop in shares in after-hours trading.
Despite exceeding earnings expectations, Nvidia's gross margin contraction led to a negative market reaction, causing a drop in share price.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
GraniteShares 2x Long NVDA Daily ETF saw a 3.41% decrease in pre-market trading following Nvidia's earnings report.
The ETF's performance is directly tied to Nvidia's stock, which dropped after earnings, leading to a decrease in the ETF's value.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Direxion Daily NVDA Bull 2X Shares experienced a 3.48% decline following Nvidia's earnings report.
The ETF is leveraged to Nvidia's stock performance, which declined after the earnings report, leading to a drop in the ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
ProShares Ultra Semiconductors ETF saw a 1.90% decline following Nvidia's earnings report.
The ETF's decline may be linked to Nvidia's stock drop, as it is part of the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60