QQQ Jumps After NVDA Beats on Top and Bottom Lines
Nvidia Corp. (NVDA), the second-largest holding in both the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ), reported fiscal first-quarter earnings after the bell on Wednesday that beat analyst expectations, sending shares higher.
Shares of the chip giant were last trading up by 4.5%, pulling QQQ higher by 0.6%.
The chip giant posted adjusted earnings per share of $0.96, ahead of the $0.93 consensus estimate. Revenue came in at $44.1 billion, also topping the $43.3 billion estimate.
The stock fluctuated as investors digested Nvidia's second-quarter revenue guidance of $45 billion, that was slightly below the $45.2 billion estimate. That figure includes a notable drag from Nvidia's AI chip for the Chinese market, the H20, which is now facing export restrictions.
In its CFO commentary, Nvidia disclosed that first-quarter revenue was reduced by about $2.5 billion due to U.S. export restrictions impacting shipments to China. The pain worsens in the second quarter, where management expects a revenue hit of roughly $8 billion tied to the H20 restrictions.
Despite the China drag, Nvidia's data center segment remains dominant, with revenue of $39.1 billion in the first quarter, making up the bulk of the company's revenues.'NVIDIA is putting digestion fears fully to rest, showing acceleration of the business other than the China headwinds around growth drivers that seem durable. Everything should get better from here,' said analysts at Morgan Stanley.
Meanwhile, analysts at Citi said they "expect NVDA stock to break its range-bound trend since mid-last year and likely make a fresh 52 week high."625 U.S.-listed ETFs hold Nvidia stock, according to etf.com's ETF Stock Holdings tool. The VanEck Semiconductor ETF (SMH) is one of the largest holders of the stock, with a 21% position. It was last trading up by around 1%.
Editor's note: This article has been updated to include commentary from analysts and additional information.Permalink | © Copyright 2025 etf.com. All rights reserved
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