VanEck Semiconductor ETF Gains 12% in January
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Strong January Performance: The VanEck Semiconductor ETF gained 12% in January, significantly outperforming the S&P 500's 1.5% increase, indicating a robust recovery in the semiconductor sector and heightened investor confidence.
- Key Holdings Contribution: Among its top ten holdings, Micron Technology's stock surged 45.4% in January, driving overall performance and reflecting strong demand for memory chips, particularly in artificial intelligence applications.
- Future Earnings Expectations: Nvidia, the ETF's largest holding, is expected to report a 65% year-over-year growth in its upcoming earnings on February 25, and if results meet expectations, it could further boost the ETF's performance and attract more investor interest.
- Outstanding Long-Term Returns: As of February 6, the VanEck Semiconductor ETF has delivered a 62.2% return over the past year, quadrupling the S&P 500's performance, showcasing its strong performance and competitive edge in long-term investments.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 190.040
Low
200.00
Averages
264.97
High
352.00
Current: 190.040
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.
Coinbase's Q4 Earnings Call Preview
- Market Focus: The upcoming earnings call is expected to highlight discussions on 'stablecoins' with a 96% probability, and 'custodial' topics at 94%, indicating strong investor interest in stablecoin market dynamics that could influence Coinbase's strategic direction.
- Regulatory Challenges: Coinbase has withdrawn its support for the cryptocurrency market structure bill due to opposition against a clause prohibiting exchanges from paying interest on users' stablecoin balances, which may impact its compliance strategy and future business development.
- Financial Expectations: Analysts forecast Coinbase's Q4 revenue to be $1.85 billion, down 18.5% from $2.27 billion last year, with an expected earnings per share of $1.07, reflecting a significant 68% year-over-year decline that could negatively affect investor confidence.
- Stock Performance: Coinbase shares closed 1.29% higher at $167.25 on Monday, but have plummeted 26% year-to-date, indicating a weak price trend in the short, medium, and long term, which may influence investor holding decisions.
See More
Nvidia Benefits from AI Investment Surge
- Massive Capital Expenditure: Alphabet and Meta are planning to invest $305 billion in 2026 to expand AI bandwidth, significantly higher than last year's spending, indicating strong market demand for AI infrastructure that directly boosts Nvidia's market share and revenue growth.
- Market Dominance: Nvidia holds approximately 90% market share in the data center chip market, leveraging its Hopper, Blackwell, and upcoming Ruben architectures along with CUDA software to enhance its competitive edge in AI application development, ensuring sustained revenue growth.
- Strong Financial Performance: For the third quarter of fiscal 2026, Nvidia reported a 62% increase in revenue and a 65% rise in net income year-over-year, showcasing its robust performance in the AI sector, attracting investor interest and boosting market confidence.
- Potential Risk Factors: Despite Nvidia's impressive results, concerns about an AI bubble and the trend of customers seeking self-sufficiency could pressure future sales, necessitating careful evaluation of the sustainability of long-term returns by investors.
See More
Analysis of Investor Sell-off in Software Stocks
- Market Sell-off Trend: Recently, investors have sold off shares of software companies due to concerns about the potential impact of artificial intelligence on software demand, leading to widespread declines in stock prices and reflecting market worries about future profitability.
- Nvidia CEO's Warning: Nvidia CEO Jensen Huang stated that the belief AI will completely replace software is 'illogical', asserting that AI should enhance existing tools rather than replace them, which could improve business efficiency.
- Nvidia Financial Performance: Over the past 12 months, Nvidia has generated nearly $100 billion in profits, showcasing its strong growth in the AI sector, although its stock price has experienced fluctuations, the market remains optimistic about its future prospects.
- Software Stock Investment Opportunities: Salesforce and Adobe are trading near multi-year lows, and while there are risks involved, this could present an appealing buying opportunity for value-seeking investors looking for contrarian investments.
See More
Jumia Stock Plummets 15.8% Despite Revenue Beat
- Earnings Beat: Jumia reported a 34.4% year-over-year revenue growth to $61.4 million in Q4, surpassing Wall Street's expectation of $60.66 million, indicating strong performance in the African e-commerce sector.
- Wider Losses: Despite the revenue beat, Jumia posted a loss of $0.08 per share, exceeding the analyst estimate of a $0.05 loss, highlighting ongoing challenges in achieving profitability.
- Market Reaction: Jumia's stock plummeted 15.8% on a day when the S&P 500 and Nasdaq fell by 0.4% and 0.6%, respectively, reflecting investor concerns over its profitability outlook.
- Valuation Insights: Even with the stock's decline, Jumia maintains a market capitalization of approximately $1.27 billion, valued at about 5.2 times this year's expected sales, suggesting it may be undervalued based on its sales growth rate.
See More
Astera Labs Q4 Earnings Beat Expectations but Shares Drop
- Earnings Beat: Astera Labs reported Q4 earnings per share of 58 cents, exceeding the expected 51 cents, with revenue of $271 million surpassing the $250 million forecast, reflecting a 92% year-over-year growth; however, the revenue fell short of the $280 million anticipated by analysts, leading to a 10% drop in shares.
- Net Income Surge: The company posted a net income of $45 million, an 82% increase from $24.7 million a year ago, indicating strong profitability despite the negative market reaction, which reflects investor caution regarding future growth prospects.
- Positive Outlook: Astera Labs expects first-quarter revenue to range between $286 million and $297 million, exceeding Wall Street's expectation of $259 million, suggesting continued growth potential in the cloud and AI infrastructure sectors.
- Executive Changes and Expansion Plans: CFO Mike Tate will step down on March 2, with Desmond Lynch from Rambus taking over, while the company announced the opening of a research and development center in Israel to access a larger talent pool, enhancing its technological innovation and market competitiveness.
See More
Astera Labs Q4 Results Exceed Expectations Amid Leadership Change
- Earnings Beat: Astera Labs reported Q4 earnings of 58 cents per share, surpassing the 51 cents expected by analysts, with revenue of $271 million reflecting a 92% year-over-year increase; however, the stock fell 10% in after-hours trading due to revenue falling short of some analysts' $280 million expectations.
- Strong Guidance: Despite the stock decline, CEO Jitendra Mohan issued an optimistic revenue forecast for Q1 2026, projecting between $286 million and $297 million, exceeding Wall Street's $259 million expectations, indicating robust growth potential in the AI infrastructure sector.
- Leadership Change Impact: CFO Mike Tate's resignation, while he remains as a strategic advisor, and the appointment of Desmond Lynch as the new CFO effective March 2 may negatively affect investor confidence, particularly following the earnings report.
- R&D Center Establishment: Astera Labs announced the opening of a research and development center in Israel to address resource bottlenecks and access a broader talent pool, highlighting the company's commitment to future technological advancements and strategic positioning in the AI and semiconductor markets.
See More
Coinbase's Q4 Earnings Call Preview
- Market Focus: The upcoming earnings call is expected to highlight discussions on 'stablecoins' with a 96% probability, and 'custodial' topics at 94%, indicating strong investor interest in stablecoin market dynamics that could influence Coinbase's strategic direction.
- Regulatory Challenges: Coinbase has withdrawn its support for the cryptocurrency market structure bill due to opposition against a clause prohibiting exchanges from paying interest on users' stablecoin balances, which may impact its compliance strategy and future business development.
- Financial Expectations: Analysts forecast Coinbase's Q4 revenue to be $1.85 billion, down 18.5% from $2.27 billion last year, with an expected earnings per share of $1.07, reflecting a significant 68% year-over-year decline that could negatively affect investor confidence.
- Stock Performance: Coinbase shares closed 1.29% higher at $167.25 on Monday, but have plummeted 26% year-to-date, indicating a weak price trend in the short, medium, and long term, which may influence investor holding decisions.
See More
Nvidia Benefits from AI Investment Surge
- Massive Capital Expenditure: Alphabet and Meta are planning to invest $305 billion in 2026 to expand AI bandwidth, significantly higher than last year's spending, indicating strong market demand for AI infrastructure that directly boosts Nvidia's market share and revenue growth.
- Market Dominance: Nvidia holds approximately 90% market share in the data center chip market, leveraging its Hopper, Blackwell, and upcoming Ruben architectures along with CUDA software to enhance its competitive edge in AI application development, ensuring sustained revenue growth.
- Strong Financial Performance: For the third quarter of fiscal 2026, Nvidia reported a 62% increase in revenue and a 65% rise in net income year-over-year, showcasing its robust performance in the AI sector, attracting investor interest and boosting market confidence.
- Potential Risk Factors: Despite Nvidia's impressive results, concerns about an AI bubble and the trend of customers seeking self-sufficiency could pressure future sales, necessitating careful evaluation of the sustainability of long-term returns by investors.
See More
Analysis of Investor Sell-off in Software Stocks
- Market Sell-off Trend: Recently, investors have sold off shares of software companies due to concerns about the potential impact of artificial intelligence on software demand, leading to widespread declines in stock prices and reflecting market worries about future profitability.
- Nvidia CEO's Warning: Nvidia CEO Jensen Huang stated that the belief AI will completely replace software is 'illogical', asserting that AI should enhance existing tools rather than replace them, which could improve business efficiency.
- Nvidia Financial Performance: Over the past 12 months, Nvidia has generated nearly $100 billion in profits, showcasing its strong growth in the AI sector, although its stock price has experienced fluctuations, the market remains optimistic about its future prospects.
- Software Stock Investment Opportunities: Salesforce and Adobe are trading near multi-year lows, and while there are risks involved, this could present an appealing buying opportunity for value-seeking investors looking for contrarian investments.
See More
Jumia Stock Plummets 15.8% Despite Revenue Beat
- Earnings Beat: Jumia reported a 34.4% year-over-year revenue growth to $61.4 million in Q4, surpassing Wall Street's expectation of $60.66 million, indicating strong performance in the African e-commerce sector.
- Wider Losses: Despite the revenue beat, Jumia posted a loss of $0.08 per share, exceeding the analyst estimate of a $0.05 loss, highlighting ongoing challenges in achieving profitability.
- Market Reaction: Jumia's stock plummeted 15.8% on a day when the S&P 500 and Nasdaq fell by 0.4% and 0.6%, respectively, reflecting investor concerns over its profitability outlook.
- Valuation Insights: Even with the stock's decline, Jumia maintains a market capitalization of approximately $1.27 billion, valued at about 5.2 times this year's expected sales, suggesting it may be undervalued based on its sales growth rate.
See More
Astera Labs Q4 Earnings Beat Expectations but Shares Drop
- Earnings Beat: Astera Labs reported Q4 earnings per share of 58 cents, exceeding the expected 51 cents, with revenue of $271 million surpassing the $250 million forecast, reflecting a 92% year-over-year growth; however, the revenue fell short of the $280 million anticipated by analysts, leading to a 10% drop in shares.
- Net Income Surge: The company posted a net income of $45 million, an 82% increase from $24.7 million a year ago, indicating strong profitability despite the negative market reaction, which reflects investor caution regarding future growth prospects.
- Positive Outlook: Astera Labs expects first-quarter revenue to range between $286 million and $297 million, exceeding Wall Street's expectation of $259 million, suggesting continued growth potential in the cloud and AI infrastructure sectors.
- Executive Changes and Expansion Plans: CFO Mike Tate will step down on March 2, with Desmond Lynch from Rambus taking over, while the company announced the opening of a research and development center in Israel to access a larger talent pool, enhancing its technological innovation and market competitiveness.
See More
Astera Labs Q4 Results Exceed Expectations Amid Leadership Change
- Earnings Beat: Astera Labs reported Q4 earnings of 58 cents per share, surpassing the 51 cents expected by analysts, with revenue of $271 million reflecting a 92% year-over-year increase; however, the stock fell 10% in after-hours trading due to revenue falling short of some analysts' $280 million expectations.
- Strong Guidance: Despite the stock decline, CEO Jitendra Mohan issued an optimistic revenue forecast for Q1 2026, projecting between $286 million and $297 million, exceeding Wall Street's $259 million expectations, indicating robust growth potential in the AI infrastructure sector.
- Leadership Change Impact: CFO Mike Tate's resignation, while he remains as a strategic advisor, and the appointment of Desmond Lynch as the new CFO effective March 2 may negatively affect investor confidence, particularly following the earnings report.
- R&D Center Establishment: Astera Labs announced the opening of a research and development center in Israel to address resource bottlenecks and access a broader talent pool, highlighting the company's commitment to future technological advancements and strategic positioning in the AI and semiconductor markets.
See More
