Is First Trust Large Cap Growth AlphaDEX ETF (FTC) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2024
0mins
Source: NASDAQ.COM
Overview of First Trust Large Cap Growth AlphaDEX ETF (FTC): Launched in 2007, FTC is a smart beta ETF that aims to outperform the large-cap growth segment by using the AlphaDEX stock selection methodology, focusing on sectors like Industrials and Information Technology, with an expense ratio of 0.60% and a current yield of 0.32%.
Performance and Comparison with Other ETFs: As of August 2024, FTC has shown significant growth, up approximately 25.71% over the past year, but investors may also consider lower-cost alternatives like Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), which have lower expense ratios and larger asset bases.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 219.510
Low
200.00
Averages
264.97
High
352.00
Current: 219.510
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Historical Buyback Trends: Over the past year, Nvidia has authorized more than $25 billion in stock buybacks, demonstrating a consistent capital return strategy, particularly returning over $41.1 billion to shareholders through buybacks and dividends in fiscal 2026.
- Attractive Market Valuation: With a current P/E ratio of 25 times expected earnings, Nvidia appears relatively undervalued compared to historical premiums during AI expansion phases, making the buyback decision not just a capital return but a strong signal of future growth potential.
See More
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- Positive Market Reaction: As several tech companies report earnings this week, investors are optimistic about future profit expectations, particularly for firms like Zscaler, Marvell, and Salesforce, which may further drive tech stock gains.
See More
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- Oil Price Fluctuations: Brent crude oil futures rose over 2% after the strikes, while West Texas Intermediate futures fell by 4%, reflecting market sensitivity to geopolitical risks that could impact global energy supply chains.
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See More
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- New CPU Market Opportunity: The launch of Nvidia's Vera CPU, which is reportedly 1.5 times faster than comparable alternatives, is expected to generate nearly $20 billion in CPU revenue this fiscal year, opening up a new $200 billion market that could quickly narrow the gap with Intel and AMD.
- Market Share Threat: Nvidia's entry into the CPU market poses increased competitive pressure on Intel and AMD, particularly in the agentic AI space, where Nvidia's strong presence could alter the market dynamics and impact the positions of industry leaders.
- Optimistic Industry Outlook: While Nvidia's move may position it as an industry leader, Intel and AMD still have opportunities to thrive in the agentic AI CPU market, as the growing demand provides a favorable growth environment for all players involved.
See More
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- Earnings Beat Expectations: Nvidia's Q1 fiscal 2027 report showed adjusted earnings and revenue exceeding Wall Street estimates, indicating strong growth potential in the AI sector, likely driving stock price appreciation.
- New CPU Market Opportunity: CEO Jensen Huang announced the launch of the new Vera CPU, which is reportedly 1.5 times faster than comparable alternatives, expected to create a $200 billion market opportunity, further solidifying Nvidia's leadership in AI.
- Optimistic Revenue Outlook: Nvidia anticipates $20 billion in CPU revenue for the current fiscal year, which, if achieved, would align closely with Intel's revenue, showcasing its strong competitiveness in the data center market and potentially reshaping the industry landscape.
- Intensified Industry Competition: Nvidia's entry into the CPU market is expected to pose a direct challenge to Intel and AMD, intensifying competition and potentially leading to a redistribution of market shares.
See More
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- Market Share Gains: AMD's share of the desktop CPU market rose to 33.2%, up 5% year-over-year, with an even higher revenue share of 37.6%, demonstrating its pricing power despite still trailing Intel.
- AI Market Opportunity: Nvidia's CEO highlighted accelerating demand for agentic AI, presenting a massive market opportunity for AMD's EPYC processors, with the total addressable market expected to reach $200 billion, more than double the combined revenue of AMD and Intel last year.
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See More
