Comparison Analysis of ProShares Leveraged ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Fool
- Cost and Return Comparison: ProShares' SSO and QLD charge expense ratios of 0.87% and 0.95%, respectively, while QLD's one-year return of 29.85% surpasses SSO's 23.67%, yet its higher fees may deter cost-conscious investors.
- Risk and Volatility Analysis: SSO's maximum drawdown stands at -46.73%, compared to QLD's -63.68%, indicating that QLD carries greater risk in volatile markets, although it also offers higher potential returns, appealing to risk-tolerant investors.
- Portfolio Composition: QLD allocates 53% to technology stocks, with top holdings including Nvidia, Apple, and Microsoft, while SSO provides a broader sector mix with 35% in technology and 503 holdings, showcasing SSO's advantage in diversification.
- Investor Strategy Recommendations: Given that leveraged ETFs are suited for short-term investments, investors should be mindful of daily leverage resets affecting returns; QLD is ideal for those seeking high-risk, high-reward opportunities, while SSO may attract those looking for relatively stable leveraged investments.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
Nvidia Stock Valuation Low, Potential for Rebound
- Valuation Drop: Nvidia's stock currently trades at a forward P/E ratio of 25, slightly above last spring's lows, yet the market's strong growth expectations could yield substantial returns for investors.
- Market Recovery: Despite a pullback in tech stocks since October, Nvidia's price is poised for significant growth in the coming years, particularly as the AI computing market continues to expand.
- Rising Capital Expenditure: AI hyperscalers have announced record capital expenditure plans for 2026, with global data center spending projected to reach $3 trillion to $4 trillion annually, positioning Nvidia as a key beneficiary.
- Strong Revenue Outlook: Analysts forecast a 52% revenue increase for Nvidia in fiscal 2027, indicating robust performance in the AI sector and sustained market demand, despite a slight slowdown in growth rate.
See More
Micron Technology Poised for AI Hardware Growth Surge
- Surging Memory Demand: Data centers are projected to consume 70% of all memory chips in 2026, leading to a critical memory shortage and a 10%-15% increase in smartphone memory costs, creating significant market opportunities for Micron Technology.
- Strong Financial Performance: Micron reported $37.4 billion in revenue for fiscal 2025, a 49% year-over-year increase, and achieved $13.6 billion in revenue for Q1 fiscal 2026, up 57% year-over-year, indicating a robust growth trajectory.
- Market Valuation Advantage: Despite a 300% stock price increase over the past year, Micron's forward P/E ratio stands at just 10.57, significantly lower than competitors Samsung at 12.7 and Nvidia at 24.34, highlighting its investment attractiveness.
- Strategic Investment Initiatives: Micron has ceased consumer-market RAM production and is constructing a massive factory near Syracuse, New York, to meet future memory demands, demonstrating its commitment to the AI hardware market and confidence in long-term growth.
See More
Analysis of Arm Holdings' Business Model and Market Potential
- Significant Revenue Growth: Arm Holdings reported a 26% year-over-year revenue increase in Q3, maintaining competitiveness despite challenges in the smartphone sector due to high royalty rates from newer products.
- Increased R&D Investment: The company's R&D spending surged 46% to $512 million, indicating a strong commitment to innovation in emerging areas like edge AI and IoT, aimed at driving future technological advancements and market expansion.
- Data Center Market Surge: Arm's revenue from data centers more than doubled year-over-year, with expectations to capture 50% of the CPU market share among top hyperscalers by year-end, highlighting its growth potential in this massive market.
- High Gross Margin Advantage: With gross margins nearing 100% and a price-to-earnings ratio around 60, Arm's sustained high royalty rates and new product launches suggest continued profitability and positive market performance ahead.
See More
Micron Technology: A Potential Giant in AI Hardware
- Surging Market Demand: With AI's skyrocketing need for memory chips, data centers are projected to consume 70% of all memory chips in 2026, leading to a critical shortage and a 10%-15% increase in smartphone memory costs.
- Strong Financial Performance: Micron Technology reported $37.4 billion in revenue for fiscal 2025, a 49% year-over-year increase, with a gross margin of 39%, operating margin of 26%, and net income margin of 22.8%, showcasing robust profitability.
- Stock Price Surge: Micron's stock has soared over 300% in the past year, yet it trades at a forward P/E ratio of only 10.57, significantly lower than competitors Samsung at 12.7 and Nvidia at 24.34, indicating attractive valuation.
- Strategic Expansion Investment: By halting consumer RAM production and breaking ground on a massive factory near Syracuse, New York, Micron demonstrates confidence in future memory demand and strategic positioning in the market.
See More
Comparison Analysis of ProShares Leveraged ETFs
- Cost and Return Comparison: ProShares' SSO and QLD charge expense ratios of 0.87% and 0.95%, respectively, while QLD's one-year return of 29.85% surpasses SSO's 23.67%, yet its higher fees may deter cost-conscious investors.
- Risk and Volatility Analysis: SSO's maximum drawdown stands at -46.73%, compared to QLD's -63.68%, indicating that QLD carries greater risk in volatile markets, although it also offers higher potential returns, appealing to risk-tolerant investors.
- Portfolio Composition: QLD allocates 53% to technology stocks, with top holdings including Nvidia, Apple, and Microsoft, while SSO provides a broader sector mix with 35% in technology and 503 holdings, showcasing SSO's advantage in diversification.
- Investor Strategy Recommendations: Given that leveraged ETFs are suited for short-term investments, investors should be mindful of daily leverage resets affecting returns; QLD is ideal for those seeking high-risk, high-reward opportunities, while SSO may attract those looking for relatively stable leveraged investments.
See More
Comparative Analysis of MGK and SPY Investments
- Expense Ratio Comparison: MGK's expense ratio stands at 0.07%, slightly lower than SPY's 0.09%, potentially allowing investors to save on costs over the long term, thereby enhancing overall returns.
- Return and Risk Analysis: While MGK's growth of $1,892 over five years slightly surpasses SPY's $1,805, its maximum drawdown of -36.02% indicates significantly higher volatility, necessitating careful risk assessment by investors.
- Portfolio Composition: MGK's portfolio is heavily weighted with 55% in technology stocks, primarily holding Nvidia, Apple, and Microsoft, whereas SPY offers broader diversification with about 35% in tech, providing greater stability during market fluctuations.
- Investment Strategy Choice: For investors seeking high returns, MGK may be a suitable option, but for those prioritizing stability and diversification, SPY offers better risk management and return balance.
See More
Nvidia Stock Valuation Low, Potential for Rebound
- Valuation Drop: Nvidia's stock currently trades at a forward P/E ratio of 25, slightly above last spring's lows, yet the market's strong growth expectations could yield substantial returns for investors.
- Market Recovery: Despite a pullback in tech stocks since October, Nvidia's price is poised for significant growth in the coming years, particularly as the AI computing market continues to expand.
- Rising Capital Expenditure: AI hyperscalers have announced record capital expenditure plans for 2026, with global data center spending projected to reach $3 trillion to $4 trillion annually, positioning Nvidia as a key beneficiary.
- Strong Revenue Outlook: Analysts forecast a 52% revenue increase for Nvidia in fiscal 2027, indicating robust performance in the AI sector and sustained market demand, despite a slight slowdown in growth rate.
See More
Micron Technology Poised for AI Hardware Growth Surge
- Surging Memory Demand: Data centers are projected to consume 70% of all memory chips in 2026, leading to a critical memory shortage and a 10%-15% increase in smartphone memory costs, creating significant market opportunities for Micron Technology.
- Strong Financial Performance: Micron reported $37.4 billion in revenue for fiscal 2025, a 49% year-over-year increase, and achieved $13.6 billion in revenue for Q1 fiscal 2026, up 57% year-over-year, indicating a robust growth trajectory.
- Market Valuation Advantage: Despite a 300% stock price increase over the past year, Micron's forward P/E ratio stands at just 10.57, significantly lower than competitors Samsung at 12.7 and Nvidia at 24.34, highlighting its investment attractiveness.
- Strategic Investment Initiatives: Micron has ceased consumer-market RAM production and is constructing a massive factory near Syracuse, New York, to meet future memory demands, demonstrating its commitment to the AI hardware market and confidence in long-term growth.
See More
Analysis of Arm Holdings' Business Model and Market Potential
- Significant Revenue Growth: Arm Holdings reported a 26% year-over-year revenue increase in Q3, maintaining competitiveness despite challenges in the smartphone sector due to high royalty rates from newer products.
- Increased R&D Investment: The company's R&D spending surged 46% to $512 million, indicating a strong commitment to innovation in emerging areas like edge AI and IoT, aimed at driving future technological advancements and market expansion.
- Data Center Market Surge: Arm's revenue from data centers more than doubled year-over-year, with expectations to capture 50% of the CPU market share among top hyperscalers by year-end, highlighting its growth potential in this massive market.
- High Gross Margin Advantage: With gross margins nearing 100% and a price-to-earnings ratio around 60, Arm's sustained high royalty rates and new product launches suggest continued profitability and positive market performance ahead.
See More
Micron Technology: A Potential Giant in AI Hardware
- Surging Market Demand: With AI's skyrocketing need for memory chips, data centers are projected to consume 70% of all memory chips in 2026, leading to a critical shortage and a 10%-15% increase in smartphone memory costs.
- Strong Financial Performance: Micron Technology reported $37.4 billion in revenue for fiscal 2025, a 49% year-over-year increase, with a gross margin of 39%, operating margin of 26%, and net income margin of 22.8%, showcasing robust profitability.
- Stock Price Surge: Micron's stock has soared over 300% in the past year, yet it trades at a forward P/E ratio of only 10.57, significantly lower than competitors Samsung at 12.7 and Nvidia at 24.34, indicating attractive valuation.
- Strategic Expansion Investment: By halting consumer RAM production and breaking ground on a massive factory near Syracuse, New York, Micron demonstrates confidence in future memory demand and strategic positioning in the market.
See More
Comparison Analysis of ProShares Leveraged ETFs
- Cost and Return Comparison: ProShares' SSO and QLD charge expense ratios of 0.87% and 0.95%, respectively, while QLD's one-year return of 29.85% surpasses SSO's 23.67%, yet its higher fees may deter cost-conscious investors.
- Risk and Volatility Analysis: SSO's maximum drawdown stands at -46.73%, compared to QLD's -63.68%, indicating that QLD carries greater risk in volatile markets, although it also offers higher potential returns, appealing to risk-tolerant investors.
- Portfolio Composition: QLD allocates 53% to technology stocks, with top holdings including Nvidia, Apple, and Microsoft, while SSO provides a broader sector mix with 35% in technology and 503 holdings, showcasing SSO's advantage in diversification.
- Investor Strategy Recommendations: Given that leveraged ETFs are suited for short-term investments, investors should be mindful of daily leverage resets affecting returns; QLD is ideal for those seeking high-risk, high-reward opportunities, while SSO may attract those looking for relatively stable leveraged investments.
See More
Comparative Analysis of MGK and SPY Investments
- Expense Ratio Comparison: MGK's expense ratio stands at 0.07%, slightly lower than SPY's 0.09%, potentially allowing investors to save on costs over the long term, thereby enhancing overall returns.
- Return and Risk Analysis: While MGK's growth of $1,892 over five years slightly surpasses SPY's $1,805, its maximum drawdown of -36.02% indicates significantly higher volatility, necessitating careful risk assessment by investors.
- Portfolio Composition: MGK's portfolio is heavily weighted with 55% in technology stocks, primarily holding Nvidia, Apple, and Microsoft, whereas SPY offers broader diversification with about 35% in tech, providing greater stability during market fluctuations.
- Investment Strategy Choice: For investors seeking high returns, MGK may be a suitable option, but for those prioritizing stability and diversification, SPY offers better risk management and return balance.
See More
