Latest news with #SMH
Yahoo
2 days ago
- Business
- Yahoo
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 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 | © Copyright 2025 All rights reserved
Yahoo
4 days ago
- Business
- Yahoo
SOXL, Semiconductor Stocks Jump Ahead of Nvidia Earnings
After a rocky start to 2025, the semiconductor sector has staged a dramatic comeback as investors pile into chipmakers with renewed optimism. The biggest winners? ETFs that double—or triple—down on the space, like the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which surged nearly 10% Tuesday and has now more than doubled since the 2025 low on April 8. Even without the supercharged leverage, semiconductor stocks have gained more than 35%, as measured by the chip sector benchmark VanEck Semiconductor ETF (SMH), since that low mark. With U.S.-China trade tensions easing and the semiconductor leader Nvidia's (NVDA) earnings looming large this week, Wall Street has rediscovered its appetite for the high-growth potential of semiconductors, which are driving the tech sector and the broader U.S. stock market higher. Let's dive into what's driving this powerful rebound and what investors might expect for the rest of the year. One of the biggest catalysts for the semiconductor rally has been the de-escalation in trade tensions between the U.S. and China. After months of uncertainty and tit-for-tat tariffs that had weighed heavily on tech and manufacturing, the White House paused further tariffs in April. That move not only brought relief to global supply chains but also boosted investor confidence that the worst of the trade disruption might be behind us—for now. Semiconductors sit at the heart of this trade story. Companies like Nvidia, Advanced Micro Devices Inc. (AMD) and Qualcomm Inc. (QCOM) rely heavily on both Chinese manufacturing and demand, and any sign of improved U.S.-China relations tends to spark buying in these names. The fact that the broader market has rallied in tandem suggests this isn't just short-term optimism—it could be the beginning of a more sustainable upward trend for the sector. The next major event on investors' radar is Nvidia's quarterly earnings call after the market closes today. Analysts are expecting big things. The chipmaker is widely seen as the front-runner in artificial intelligence infrastructure, and demand for its GPUs remains strong in both the data center and consumer markets. If Nvidia beats expectations, and perhaps more importantly, issues bullish guidance, the entire semiconductor space could get another jolt higher, as well as the broader but tech-heavy S&P 500 index. Traders are positioning for just that. Options activity and semiconductor ETF gains illustrate the heightened expectations. But it's not without risk. If Nvidia misses or disappoints with cautious guidance, we could see a swift reversal—especially in highly volatile instruments like leveraged ETFs. Looking beyond earnings, investors are balancing strong fundamentals in the chip space—think AI growth, edge computing and auto semis—with macro risks like slowing global growth and still-fragile international relations. If economic growth falters later in 2025, cyclicals like semiconductors may come under pressure again. But for now, the trend is clear: Momentum is back. Semiconductor stocks have made an impressive comeback, fueled by improving geopolitics and the promise of blockbuster earnings. Leveraged ETFs like SOXL have been standout performers in this rebound, but they're also high-risk tools best used with care. For investors looking to participate in the rally, the next few weeks could be pivotal. Nvidia's earnings may set the tone for the second half of the year—and while the outlook is optimistic, markets remain sensitive to economic data, trade policy and the Fed's next moves. Bottom line: The chips are back in play. Just be sure to manage risk and stay informed, especially when the market is moving this | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
5 days ago
- Business
- Time of India
Semiconductor ETF options show caution ahead of Nvidia results
Traders in the options markets are bracing for industry-wide volatility when AI-chipmaker Nvidia reports results on Wednesday, with defensive options contracts on a major semiconductor ETF drawing heavy trading. For VanEck Semiconductor ETF, the largest semiconductors ETF with some $22 billion in assets, about 2.4 put options changed hands daily over the last 10 days against every call option traded, the most defensive the trading has been in about 10 months, according to Trade Alert data. Call options convey the right to buy shares at a fixed price in the future while put contracts offer the right to sell the shares at a given price. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. "The put buying in SMH ahead of Nvidia's earnings reflects growing concern about potential volatility for the entire sector following the report," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. On Tuesday, some 105,000 put options changed hands against about 16,000 call options, by 3 p.m. ET (1900 GMT), Trade Alert data showed. Live Events In one notable trade, one investor last week bought 50,000 put options in SMH that would guard against the ETF's shares slipping about 10%, to below $220, by the end of May. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Nvidia accounts for about a fifth of the semi ETF's assets but due to its dominance in the artificial intelligence market, the chipmaker's influence goes beyond its weight in the fund, analysts said. While investors have been focused on defensive plays in the SMH ETF, options action on Nvidia itself was more mixed, Murphy said. Murphy said investors were selling options to take advantage of heightened volatility expectations around the chipmaker's earnings, meaning they were betting the reaction to the chipmaker's results will not be overly severe. "It's been hedging in SMH while in NVDA they're tactically monetizing elevated premiums ahead of earnings," he said. Susquehanna makes markets in the securities of Nvidia. Interactive Brokers' list of the 25 most active securities by client orders showed Nvidia ranked second, underlining the heightened investor interest in the results. Still, the stock was only one of two names for which investors were net sellers. "That likely reflects some caution ahead of earnings after a solid run," Steve Sosnick, Interactive Brokers' chief strategist, said in a note. Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. For the year, Nvidia shares are up about 0.7%, while SMH shares are up about 1.2%.
The Star
5 days ago
- Business
- The Star
Semiconductor ETF options show caution ahead of Nvidia results
FILE PHOTO: Nvidia logo and rising stock graph are seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo NEW YORK (Reuters) -Traders in the options markets are bracing for industry-wide volatility when AI-chipmaker Nvidia reports results on Wednesday, with defensive options contracts on a major semiconductor ETF drawing heavy trading. For VanEck Semiconductor ETF, the largest semiconductors ETF with some $22 billion in assets, about 2.4 put options changed hands daily over the last 10 days against every call option traded, the most defensive the trading has been in about 10 months, according to Trade Alert data. Call options convey the right to buy shares at a fixed price in the future while put contracts offer the right to sell the shares at a given price. "The put buying in SMH ahead of Nvidia's earnings reflects growing concern about potential volatility for the entire sector following the report," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. On Tuesday, some 105,000 put options changed hands against about 16,000 call options, by 3 p.m. ET (1900 GMT), Trade Alert data showed. In one notable trade, one investor last week bought 50,000 put options in SMH that would guard against the ETF's shares slipping about 10%, to below $220, by the end of May. Nvidia accounts for about a fifth of the semi ETF's assets but due to its dominance in the artificial intelligence market, the chipmaker's influence goes beyond its weight in the fund, analysts said. While investors have been focused on defensive plays in the SMH ETF, options action on Nvidia itself was more mixed, Murphy said. Murphy said investors were selling options to take advantage of heightened volatility expectations around the chipmaker's earnings, meaning they were betting the reaction to the chipmaker's results will not be overly severe. "It's been hedging in SMH while in NVDA they're tactically monetizing elevated premiums ahead of earnings," he said. Susquehanna makes markets in the securities of Nvidia. Interactive Brokers' list of the 25 most active securities by client orders showed Nvidia ranked second, underlining the heightened investor interest in the results. Still, the stock was only one of two names for which investors were net sellers. "That likely reflects some caution ahead of earnings after a solid run," Steve Sosnick, Interactive Brokers' chief strategist, said in a note. Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. For the year, Nvidia shares are up about 0.7%, while SMH shares are up about 1.2%. (Reporting by Saqib Iqbal AhmedEditing by Rod Nickel)
Yahoo
5 days ago
- Business
- Yahoo
Semiconductor ETF options show caution ahead of Nvidia results
By Saqib Iqbal Ahmed NEW YORK (Reuters) -Traders in the options markets are bracing for industry-wide volatility when AI-chipmaker Nvidia reports results on Wednesday, with defensive options contracts on a major semiconductor ETF drawing heavy trading. For VanEck Semiconductor ETF, the largest semiconductors ETF with some $22 billion in assets, about 2.4 put options changed hands daily over the last 10 days against every call option traded, the most defensive the trading has been in about 10 months, according to Trade Alert data. Call options convey the right to buy shares at a fixed price in the future while put contracts offer the right to sell the shares at a given price. "The put buying in SMH ahead of Nvidia's earnings reflects growing concern about potential volatility for the entire sector following the report," said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group. On Tuesday, some 105,000 put options changed hands against about 16,000 call options, by 3 p.m. ET (1900 GMT), Trade Alert data showed. In one notable trade, one investor last week bought 50,000 put options in SMH that would guard against the ETF's shares slipping about 10%, to below $220, by the end of May. Nvidia accounts for about a fifth of the semi ETF's assets but due to its dominance in the artificial intelligence market, the chipmaker's influence goes beyond its weight in the fund, analysts said. While investors have been focused on defensive plays in the SMH ETF, options action on Nvidia itself was more mixed, Murphy said. Murphy said investors were selling options to take advantage of heightened volatility expectations around the chipmaker's earnings, meaning they were betting the reaction to the chipmaker's results will not be overly severe. "It's been hedging in SMH while in NVDA they're tactically monetizing elevated premiums ahead of earnings," he said. Susquehanna makes markets in the securities of Nvidia. Interactive Brokers' list of the 25 most active securities by client orders showed Nvidia ranked second, underlining the heightened investor interest in the results. Still, the stock was only one of two names for which investors were net sellers. "That likely reflects some caution ahead of earnings after a solid run," Steve Sosnick, Interactive Brokers' chief strategist, said in a note. Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. For the year, Nvidia shares are up about 0.7%, while SMH shares are up about 1.2%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
