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Yahoo
9 hours ago
- Business
- Yahoo
ETFs to Buy After NVIDIA's Q1 Earnings Miss, Record Revenues
NVIDIA NVDA reported mixed first-quarter fiscal 2026 results. Though the AI darling lagged earnings estimates, it reported record-breaking revenues, which topped estimates. NVIDIA shares jumped as much as 6% in after-hours trading. Investors seeking to tap the company's growth could invest in ETFs having the largest allocation to the AI chipmaker. Strive U.S. Semiconductor ETF SHOC, VanEck Vectors Semiconductor ETF SMH, VanEck Fabless Semiconductor ETF SMHX, YieldMax Target 12 Semiconductor Option Income ETF SOXY and Columbia Select Technology ETF SEMI could be compelling options. The company's earnings per share were 81 cents for the first quarter, missing the Zacks Consensus Estimate by 4 cents and up from 61 cents reported in the year-ago quarter. This marked an end to nine straight quarters of earnings beats. Revenues surged 69% year over year to a record $44.1 billion and beat the consensus mark of $42.70 billion. The impressive performance was largely driven by a booming data center business. The blockbuster results were driven by incredible demand for NVIDIA's latest AI chips. Data Center revenues, which account for much of NVIDIA's revenues, jumped 73% year over year to $39.1 billion (read:NVIDIA Reclaims $3 Trillion: ETFs to Bet On).The gaming division also performed strongly, with revenues climbing 42% year over year to $3.8 billion. This growth was bolstered by the launch of the Nintendo Switch 2, which features NVIDIA's chips and AI-powered DLSS technology supporting up to 4K gaming. NVIDIA's graphics processing capabilities, historically focused on gaming, are now increasingly used in AI applications, highlighting the broadening utility of its automotive and robotics segment saw a 72% revenue increase, reaching $567 million. Growth in this area was driven by rising demand for self-driving car chips and robotics software, including a significant advance in humanoid robotics. The company introduced Isaac GR00T N1 — the world's first open humanoid robot foundation model — and outlined plans to deepen its involvement in robotics demand for NVIDIA's artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge. NVIDIA is building factories in the United States and working with its partners to produce AI supercomputers. NVIDIA CEO Jensen Huang said, "Countries around the world are recognizing AI as essential infrastructure – just like electricity and the internet – and NVIDIA stands at the center of this profound transformation." Its chief financial officer, Colette Kress, said that Microsoft has 'deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands' of the company's GB200 product, due largely to its partnership with is also accelerating its global expansion. It recently announced plans to build AI factories in the United States and Saudi Arabia and launched the Stargate UAE AI infrastructure cluster in Abu Dhabi. Furthermore, NVIDIA has expanded collaborations with major cloud providers, including Oracle, Google, and Microsoft. Its Blackwell-based cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure (read: Stocks & ETFs to Benefit From Trump's Stargate Project).Looking ahead to the second quarter of fiscal 2026, the graphics chipmaker expects revenues of $45 billion, plus or minus 2%. The Zacks Consensus Estimate is pegged at $45.1 billion. This guidance includes an estimated $8 billion hit from H20 export restrictions, largely impacting sales to China. The AI darling has lost billions in revenues from Trump's ban on its chip exports to China. Despite this, NVIDIA remains confident in the ongoing global demand for its AI infrastructure. Strive U.S. Semiconductor ETF (SHOC)Strive U.S. Semiconductor ETF seeks broad market exposure to the U.S. semiconductor sector. It follows the Bloomberg US Listed Semiconductors Select Total Return Index and holds 32 stocks in its basket, with NVIDIA accounting for the top firm at 22.9%. Strive U.S. Semiconductor ETF has an AUM of $81.8 million and charges 40 bps in annual fees. It trades in a volume of 10,000 shares per day on average and sports a Zacks ETF Rank #1 (Strong Buy).VanEck Vectors Semiconductor ETF (SMH)VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with NVIDIA occupying the top position at 21.1%. It has managed assets worth $22 billion and charges 35 bps in annual fees and expenses. VanEck Vectors Semiconductor ETF trades in an average daily volume of 6 million shares and flaunts a Zacks ETF Rank # Fabless Semiconductor ETF (SMHX)VanEck Fabless Semiconductor ETF offers exposure to companies involved in semiconductor production and is classified as a fabless. It follows the MarketVector US Listed Fabless Semiconductor Index and holds 23 stocks in its basket. NVIDIA takes the top spot at 20.6% share. SMHX, which debuted in the space in late August, has accumulated $47.8 million in its asset base. VanEck Fabless Semiconductor ETF charges 35 bps in annual fees and trades in a volume of 40,000 shares. It flaunts a Zacks ETF Rank # Target 12 Semiconductor Option Income ETF (SOXY) YieldMax Target 12 Semiconductor Option Income ETF is an actively managed ETF that seeks a target annual income level of 12% and capital appreciation via direct investments in a select portfolio of semiconductor companies. NVIDIA occupies the top position in the portfolio with a 19.5% share. YieldMax Target 12 Semiconductor Option Income ETF debuted in December and has gathered $6 million in its asset base. It charges 99 bps in annual fees and trades in an average daily volume of 3,000 Select Technology ETF (SEMI) Columbia Select Technology ETF is an actively managed ETF that focuses on semiconductor and semiconductor-related businesses that may be poised to benefit from technology innovation and disruption. It follows the S&P Global 1200 Information Technology Index and holds 35 stocks in its basket, with NVIDIA occupying the second position at 17.2%. Columbia Select Technology ETF has amassed $37.3 million in its asset base and trades in an average daily volume of 4,000 shares. It charges 75 bps in fees per year. 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 VanEck Semiconductor ETF (SMH): ETF Research Reports Columbia Select Technology ETF (SEMI): ETF Research Reports Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports VanEck Fabless Semiconductor ETF (SMHX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Straits Times
20-05-2025
- Business
- Straits Times
Singapore should focus on semiconductor opportunities despite trade challenges: Industry group
SINGAPORE - Singapore and its Asean neighbours must stay committed to advancing their semiconductor strategies as most chipmakers will continue to invest worldwide and innovate with or without trade barriers, said Mr Ajit Manocha, president and chief executive of global industry association SEMI. Mr Manocha said for an industry that is globally interconnected and interdependent, the current trade tensions and policy uncertainty makes the operating environment extremely challenging. However, growing demand for technology and semiconductors - which powers everything electronic - means chipmakers will look through the ongoing disruption and find the best ways to avail new opportunities. 'This is a time of unprecedented challenges and unprecedented uncertainties, but it is also a time of unprecedented opportunities,' Mr Manocha said in an interview with The Straits Times ahead of a conference - SEMICON South-east Asia 2025 - that his association is holding in Singapore this week. 'I think it will be great for the Singapore government to really say loud and clear how they plan to advance the agenda of their semiconductor strategy in this country. And I think other countries from Asean should follow suit.' Mr Manocha said a total of 105 new chip fabrication plants, or fabs, have been announced worldwide, of which 84 are already under construction. Six of these under construction fabs are in South-east Asia, of which half are in Singapore alone, he said. 'But with global chip sales projected to increase to US$1 trillion (S$1.3 trillion) by early 2030s, the industry will need another 30 fabs by 2030.' This is an opportunity for Asean and Singapore, who are already part of the global chip supply chain, said Mr Manocha, adding that many countries are now trying to attract semiconductor investments. 'Singapore should definitely play a bigger role to attract more investments, given it already has the largest semiconductor ecosystem in Asean,' he said. Mr Ajit Manocha, president and chief executive of global industry association SEMI, believes Singapore can attract more investments with its chips ecosystem already the largest in Asean. PHOTO: AJIT MANOCHA The Republic is a critical global node in the semiconductor supply chain, contributing one in 10 chips and one in 5 semiconductor equipment produced annually, according to Singapore's Economic Development Board. The semiconductor industry here is composed of a diverse ecosystem with research and development and manufacturing across the chip value-chain, and contributes more than 8 per cent to Singapore's gross domestic product. Other Asean nations, including Malaysia, Thailand, the Philippines and Vietnam, also play an important role in the global chip value chain. The current uncertainty surrounding the industry stems from an intensifying technology competition between the United States and China - the world's two largest economies. US President Donald Trump has also threatened to impose a global sectoral tariff on US semiconductor imports. Mr Manocha - who has previously worked at chipmakers including GlobalFoundries, Philips Semiconductors, and Spansion - said while the current economic environment is disruptive, the chip industry has gone through many ups and downs. 'I have been in this industry for more than four decades, and I have seen the earlier life cycle of this industry where we had deep up and down-cycles. But feast or famine, many of us survived those deep down-cycles and learned how to manage our businesses despite volatility.' Mr Manocha believes the current global trade turbulence will probably persist for another six months before settling down. 'Semiconductor investments are based on the long-term view. I have not heard anybody stopping with their plans for new fabs. They may be slowing down for other reasons, but I think this will continue, and the long-term prospects of the industry are tremendous.' He said the more persistent challenges of the industry are its constant hunt for talent and its growing need for energy, preferably from sustainable sources. Mr Manocha said governments have an important role to play in developing talent and making sure that enough sustainable energy sources are available to power their semiconductor plants. 'The role of governments is becoming even more important in this environment, especially given the other challenges we have, like shortage of talent, the issues of energy crisis, the issues with some regulations on the chemicals. So the role of government is also very critical.' Mr Manocha praised Singapore for its focus on developing the next generation of workforce with programmes such as the Semiconductor Active Youth Ambassador Program, or SAY, initiated by the Singapore Semiconductor Industry Association (SSIA). The industry-led initiative, in collaboration with local polytechnics and universities, helps students gain valuable hands-on experience in the electronics sector, as well as training and mentorship opportunities with companies. SEMI itself has a programme called the SEMI International Policy Summit, or SIPS, where it helps the global semiconductor industry collaborate with government officials responsible for guiding semiconductor policy initiatives. SIPS working groups are focused on narrowing the talent gap with workforce development initiatives, minimizing environmental disruptions with sustainability, and ensuring safe operations with environment health and safety initiatives. He said Singapore plays an active role in promoting SIPS goals and initiatives. Indeed, the next SIPS meeting will be in Singapore on Dec 11 and 12 this year. 'I think governments have a role to play to inspire the young generation to benefit from STEM (science, technology, engineering and mathematics) education. It is huge because that helps you develop the most advanced technologies that are going to be transformative.' Join ST's Telegram channel and get the latest breaking news delivered to you.
Cision Canada
19-05-2025
- Business
- Cision Canada
SEMI Reports Typical Q1 2025 Semiconductor Seasonality with Potential for Atypical Shifts Due to Tariff Uncertainty
MILPITAS, Calif., May 19, 2025 /CNW/ -- According to the Q1 2025 Semiconductor Manufacturing Monitor (SMM) Report released by SEMI in collaboration with TechInsights, the global semiconductor manufacturing industry entered 2025 with typical seasonal patterns. However, looming tariff threats and evolving supply chain strategies are expected to create atypical seasonality for several industry segments as the year progresses. Despite heightened trade policy risks, current data for the first quarter of 2025 indicate that electronics and integrated circuit (IC) sales have not been directly impacted by the newly announced tariffs. Electronics sales declined 16% quarter-over-quarter (QoQ) in Q1 2025 and remained flat year-over-year (YoY), consistent with traditional seasonal patterns. IC sales contracted by 2% QoQ but posted a robust 23% YoY increase, reflecting ongoing investment in AI and high-performance computing infrastructure. "While the first quarter of 2025 did not see a direct impact from new tariffs on electronics and IC sales, the uncertainty around global trade policies is prompting some companies to accelerate shipments and others to pause investments," said Clark Tseng, Senior Director of Market Intelligence at SEMI. "This push-pull dynamic could lead to atypical seasonality for the remainder of the year as the industry adapts to shifting supply chain and tariff landscapes." Semiconductor capital expenditures (CapEx) declined 7% QoQ but surged 27% YoY, as manufacturers continued to invest heavily in leading-edge logic, high-bandwidth memory (HBM) and advanced packaging to support AI-driven applications. Memory-related CapEx soared 57% YoY in Q1 2025, while non-memory CapEx expanded by 15% YoY, underscoring the industry's focus on innovation and resilience. Wafer fab equipment (WFE) spending rose 19% year-over-year in Q1 2025 and is projected to increase another 12% in Q2, driven by strong investments in advanced logic and memory production to support the rapid adoption of AI semiconductors. Test equipment billings surged 56% year-over-year in Q1 and are expected to grow by 53% in Q2, reflecting the heightened complexity and stringent performance requirements of AI and HBM chip testing. Assembly and packaging equipment also registered double-digit growth, benefiting from the industry's push toward higher-density integration and advanced packaging solutions. "The WFE market is poised for steady growth driven by government investments and semiconductor advancements, particularly in AI and emerging technologies," said Boris Metodiev, Director of Market Analysis at TechInsights. "However, geopolitical uncertainties, including export restrictions and potential tariffs, pose significant risks that could impact this positive trajectory." Aligned with the growth in capital equipment investments, global installed wafer fab capacity is on the rise and is projected to surpass 42.5 million wafers per quarter (in 300mm wafer equivalents), reflecting a 2% QoQ and 7% YoY increase in Q1 2025. China continues to lead all regions in capacity expansion, though the pace of growth is expected to moderate in the coming quarters. Notably, Japan and Taiwan are experiencing the strongest quarterly capacity gains, driven by significant investments in power semiconductor manufacturing in Japan and the ramp-up of a leading-edge foundry in Taiwan. Looking ahead, SEMI and TechInsights expect the industry to experience atypical seasonal patterns in 2025 as companies navigate the dual challenges of trade policy uncertainty and supply chain adaptation. While demand for AI and data center technologies remains a bright spot, other segments may see delayed investment or demand shifts as the market responds to evolving tariff and geopolitical uncertainties. The Semiconductor Manufacturing Monitor (SMM) report provides end-to-end data on the worldwide semiconductor manufacturing industry. The report highlights key trends based on industry indicators including capital equipment, fab capacity, and semiconductor and electronics sales, and includes a capital equipment market forecast. The SMM report also contains two years of quarterly data and a one-quarter outlook for the semiconductor manufacturing supply chain including leading IDM, fabless, foundry, and OSAT companies. An SMM subscription includes quarterly reports. Download a sample Semiconductor Manufacturing Monitor report. [email protected]. Details on SEMI market data are available at SEMI Market Data. About SEMI SEMI ® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON ® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit contact a regional office, and connect with SEMI on LinkedIn and X to learn more.
Cision Canada
09-05-2025
- Business
- Cision Canada
SEMI Applauds New Bill to Clarify Tax Credit Eligibility for Critical Semiconductor Suppliers Under U.S. CHIPS Act
MILPITAS, Calif., /CNW/ -- SEMI, the industry association serving the global semiconductor and electronics design and manufacturing supply chain, today announced support of the Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act), which clarifies that critical materials suppliers to semiconductor manufacturers are eligible for the Advanced Manufacturing Investment Tax Credit ("Section 48D") created by the United States CHIPS and Science Act. Introduced by Senators Marsha Blackburn (R-Tenn.), Michael Bennet (D-Colo.), Thom Tillis (R-NC) and Chris Coons (D-Del.), the SEMI Investment Act would help make semiconductor materials an equal part of America's investment in advanced semiconductors and contribute to a secure, domestic semiconductor supply chain. "The investment tax credit is a critical tool to accelerate construction of the semiconductor ecosystem in the United States and may be the most powerful incentive to onshore critical technologies powering the AI revolution," said Ajit Manocha, SEMI President and CEO. "Materials manufacturing projects are equally critical to ensuring that leading-edge logic and memory products are available to fuel skyrocketing AI and high-performance computing demand across the world. The SEMI Investment Act will help ensure these critical projects get built in the United States. We are deeply grateful to Senators Blackburn, Bennet, Tillis and Coons for bringing this important legislation forward to clarify Congress' original intent underlying Section 48D of the CHIPS and Science Act." The SEMI Investment Act amends the Internal Revenue Code of 1986 to clarify that 48D Tax Credit includes materials integral to the manufacturing of semiconductors and semiconductor manufacturing equipment. The bill will ensure that critical materials projects can access the same 25 percent investment tax credit that semiconductor manufacturing and semiconductor manufacturing equipment projects have access to today. "SEMI looks forward to working with Congress and the Trump Administration to pass the SEMI Investment Act into law," said Manocha. "The bipartisan support for this legislation highlights it as a critical step for the U.S. to strengthen its semiconductor industry, national security, and economic competitiveness. Additionally, the act would help prevent vital materials companies from moving overseas and ensure that American manufacturers realize the benefits of the semiconductor incentives investment Congress originally intended under the CHIPS and Science Act. We also recognize the importance of ensuring these incentives are available for the duration needed to match the long-term nature of semiconductor investments." Visit SEMI Global Advocacy to learn more about public policy efforts and developments. About SEMI SEMI ® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON ® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit contact a regional office, and connect with SEMI on LinkedIn and X to learn more. Association Contact
Yahoo
09-05-2025
- Business
- Yahoo
SEMI Applauds New Bill to Clarify Tax Credit Eligibility for Critical Semiconductor Suppliers Under U.S. CHIPS Act
MILPITAS, Calif., May 9, 2025 /PRNewswire/ -- SEMI, the industry association serving the global semiconductor and electronics design and manufacturing supply chain, today announced support of the Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act), which clarifies that critical materials suppliers to semiconductor manufacturers are eligible for the Advanced Manufacturing Investment Tax Credit ("Section 48D") created by the United States CHIPS and Science Act. Introduced by Senators Marsha Blackburn (R-Tenn.), Michael Bennet (D-Colo.), Thom Tillis (R-NC) and Chris Coons (D-Del.), the SEMI Investment Act would help make semiconductor materials an equal part of America's investment in advanced semiconductors and contribute to a secure, domestic semiconductor supply chain. "The investment tax credit is a critical tool to accelerate construction of the semiconductor ecosystem in the United States and may be the most powerful incentive to onshore critical technologies powering the AI revolution," said Ajit Manocha, SEMI President and CEO. "Materials manufacturing projects are equally critical to ensuring that leading-edge logic and memory products are available to fuel skyrocketing AI and high-performance computing demand across the world. The SEMI Investment Act will help ensure these critical projects get built in the United States. We are deeply grateful to Senators Blackburn, Bennet, Tillis and Coons for bringing this important legislation forward to clarify Congress' original intent underlying Section 48D of the CHIPS and Science Act." The SEMI Investment Act amends the Internal Revenue Code of 1986 to clarify that 48D Tax Credit includes materials integral to the manufacturing of semiconductors and semiconductor manufacturing equipment. The bill will ensure that critical materials projects can access the same 25 percent investment tax credit that semiconductor manufacturing and semiconductor manufacturing equipment projects have access to today. "SEMI looks forward to working with Congress and the Trump Administration to pass the SEMI Investment Act into law," said Manocha. "The bipartisan support for this legislation highlights it as a critical step for the U.S. to strengthen its semiconductor industry, national security, and economic competitiveness. Additionally, the act would help prevent vital materials companies from moving overseas and ensure that American manufacturers realize the benefits of the semiconductor incentives investment Congress originally intended under the CHIPS and Science Act. We also recognize the importance of ensuring these incentives are available for the duration needed to match the long-term nature of semiconductor investments." Visit SEMI Global Advocacy to learn more about public policy efforts and developments. About SEMISEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit contact a regional office, and connect with SEMI on LinkedIn and X to learn more. Association Contact Samer Bahou/SEMI USPhone: 1.408.943.7870Email: sbahou@ View original content to download multimedia: SOURCE SEMI Sign in to access your portfolio
