Tech Slumps Before NVIDIA Earnings: Any ETF Winners in Tech Space?

The Nasdaq Composite slipped 0.84% on Nov. 17, 2025, as major technology names came under pressure. Artificial intelligence (AI) behemoth NVIDIA NVDA slid about 2%. NVIDIA is likely to report on Nov. 19, 2025, after market close.

Note that bubble concerns in AI stocks have been interrupting the market momentum for quite some time now. Alphabet shares, however, rose about 3% on Nov. 17, thanks to news that Berkshire Hathaway has taken a stake (read: Is Alphabet Berkshire's New "Mag-7" Favorite? ETFs in Focus).

NVIDIA’s Massive Order Book in Focus

NVIDIA’s CEO Jensen Huang recently revealed that the company has “half a trillion dollars” in business booked for 2025 and 2026, causing high expectations for strong long-term growth, as quoted on CNBC. Several analysts warn that any hint of cooling demand could hit the stock hard and cause ripples in the other areas of the tech space.  

NVDA has a Zacks Rank #2 (Buy). NVDA has an Earnings ESP of +3.17% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

Could a Year-End Rally in AI Stocks Still Happen?

Despite the tech sell-off driven by valuation worries and heavy capex spending, some strategists believe that markets could still rally into December. Canaccord Genuity’s Michael Graham said he sees a likely year-end rally, though there will be a mix of bullish and bearish indicators, as quoted on CNBC.

HSBC’s Max Kettner echoed that sentiment, saying that the chance of a year-end melt-up in equities is far greater than fears of an AI bubble bursting, as mentioned in the above-mentioned CNBC article.

Mixed Expectations on December Rate Cut

Fed officials delivered differing messages regarding the December Fed rate cut. Governor Christopher Waller said he is watching a labor market that has shown “months of weakening,” as mentioned on the above-said CNBC article. A focus on a weakening labor market could lead him to vote for a December rate cut.

On the other hand, Vice Chair Philip Jefferson emphasized the need to “proceed slowly” (as quoted on CNBC), pointing to the uncertainty around a December rate decision. Overall, we expect the chances of low rates to be in place in the coming days. If we do not see a December rate cut, U.S. monetary policy will likely be eased in the subsequent meetings. Such a low-rate pattern would be great for growth sectors like technology.

Undervalued High-Momentum Tech ETFs in Focus

Against this backdrop, we highlight a few technology-based exchange-traded funds (ETFs) that have a P/E (36 months) less than 35X and positive past-month and past-week price gains. Note that the tech-heavy Nasdaq-100 ETF Invesco QQQ Trust QQQ has a P/E of 34.04X. QQQ has lost 2.7% over the past week and 1.3% over the past month. 

Invesco Next Gen Connectivity ETF KNCT – P/E: 24.04X; One-month price gain: Up 3.7%; One-week price gain: Up 1.1%

The underlying STOXX World AC NexGen Connectivity Index comprises companies with significant exposure to technologies or products that contribute to future connectivity through direct revenues. The ETF charges 40 bps in fees.

First Trust Indxx Innovative Transaction & Process ETF LEGR – P/E: 15.44X; One-month price gain: Up 2.0%; One-week price gain: Up 0.6%

The Indxx Blockchain Index tracks the performance of companies that are either actively using, investing in, developing, or have products that are poised to benefit from blockchain technology or the potential for increased efficiency that it provides to various business processes. The ETF charges 65 bps in fees.

iShares Future Exponential Technologies ETF XT P/E: 32.64X; One-month price gain: Up 1.9%; One-week price gain: Up 0.3%

The underlying Morningstar Exponential Technologies Index measures the performance of equity securities that are involved with the creation of groundbreaking technologies or that are users that apply such technologies within their businesses. The ETF charges 46 bps in fees.

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This article originally published on Zacks Investment Research (zacks.com).

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