Is It Wise to Invest in Nvidia-Focused ETFs Ahead of Q3 Earnings Announcement?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
Nvidia's Upcoming Earnings: Nvidia (NVDA) is set to release its third-quarter fiscal 2026 results on Nov. 19, with analysts expecting strong revenue and earnings growth, despite a recent dip in share price driven by market concerns over AI valuations.
Investment Opportunities: The current market conditions present a potential buying opportunity for investors, particularly through NVDA-heavy exchange-traded funds (ETFs), which can help diversify risk while capitalizing on Nvidia's anticipated performance.
Analyst Confidence: Analysts maintain a bullish outlook on Nvidia, with a consensus recommendation of 1.29 (on a scale of 1 to 5), indicating strong buy sentiments, and an average price target suggesting a 26.2% upside from its last closing price.
Top NVDA-Focused ETFs: Notable ETFs that heavily feature Nvidia include the VanEck Semiconductor ETF (SMH), Strive U.S. Semiconductor ETF (SHOC), and VanEck Fabless Semiconductor ETF (SMHX), all of which have shown significant year-to-date gains and hold Nvidia as a top investment.
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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: 190.050
Low
200.00
Averages
264.97
High
352.00
Current: 190.050
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.
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- Gross Margin Outlook: Despite investor skepticism regarding the 75% gross margin guidance, Arcuri stated that there are no near-term factors likely to impact this figure, indicating Nvidia's stability amid competitive threats from Google and Broadcom.
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See More
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- Market Bubble Phenomenon: Predictions of an AI bubble bursting have not materialized, yet froth remains in the market as unprofitable companies are bid up based on expectations of heavy AI infrastructure spending, prompting investors to reassess risks.
- Microsoft's Stock Volatility: Microsoft (MSFT) shares soared over the past year due to investments in OpenAI and AI infrastructure, but dropped over 16% in 2026, with analysts predicting that its AI spending will pressure profitability; Stifel downgraded the stock and cut its price target by nearly 30%.
- Diversification Strategy: While Microsoft still holds long-term value, its price fluctuations highlight the importance of a diversified AI investment portfolio, suggesting that investors anchor their holdings with a clear leader to navigate future growth in AI-related companies.
- Nvidia's Growth Potential: Nvidia (NVDA) expects $3 trillion to $4 trillion to be spent on AI infrastructure by 2030, as reiterated by CFO Colette Kress, indicating that the company will benefit from growth in the AI sector, with a reasonable forward P/E ratio of about 25, making it suitable for long-term investment.
See More
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- Improved Profitability: The company reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
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- TSMC's Market Outlook: Taiwan Semiconductor Manufacturing Company (TSMC) expects its capital expenditures to rise from $41 billion in 2025 to $54 billion, with management highlighting increased capacity to meet demand during the Q4 earnings call, leading to positive market sentiment regarding its potential benefits from the AI spending surge.
- Nvidia's Growth Potential: As a leading GPU provider, Nvidia's cloud products are sold out, and it anticipates AI spending could reach $3 to $4 trillion over the next decade, with management asserting that the company is still in the early stages of AI development and will continue to launch more powerful products to maintain its competitive edge.
- Applied Digital's Successful Pivot: Applied Digital has shifted from crypto-mining to AI infrastructure, securing a $5 billion long-term contract over 15 years, and despite currently being unprofitable, it reported a 250% year-over-year sales increase in Q2 2026, indicating strong market demand and positioning for future growth.
See More
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- Surge in Capital Expenditure: Top hyperscalers are expected to increase capital expenditures by 70% this year, with Amazon, Alphabet, Meta, and Microsoft planning a combined spending of over $600 billion, indicating a strong commitment to AI infrastructure investment.
- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
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