Should You Buy Nvidia-Heavy ETFs Before Q3 Earnings Release?

Nvidia NVDA is at the center of attention this week on the technology sector’s earnings calendar, with its third-quarter fiscal 2026 results set to be released on Nov. 19 after the market close. While this artificial intelligence (AI) giant has made notable strides in recent months, its share price has lost momentum.

Evidently, NVDA has gained 38.9% year to date, 37.6% over the past six months, and 6.3% over the past three months, but lost approximately 3.4% over the past week. While this slump in share price might be disappointing for NVDA’s investors, the fact that it is driven mainly by broader market nervousness surrounding a potential AI valuation bubble — and not by any inherent weakness in the company — suggests that investors should view this as a golden opportunity to invest in NVDA-heavy exchange-traded funds (ETFs).

This is because investing in an ETF helps investors diversify the risk associated with holding a single stock while still allowing them to benefit from any anticipated gain in NVDA’s share price following the earnings release, as the chipmaker is projected to beat analysts’ expectations.

Now, before diving into the specifics of the NVDA-heavy ETFs you can add to your portfolio, let's take a closer look at what to expect from Nvidia’s upcoming results.

NVDA Q3 Earnings: Key Metrics to Watch

NVIDIA currently has an Earnings ESP of +3.17% and a Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Over the past week, the AI leader has witnessed a one-cent upward revision to its third-quarter fiscal 2026 earnings estimate. The Zacks Consensus Estimate calls for a solid 55.7% year-over-year revenue growth and 53.1% earnings growth in the fiscal third quarter. 

NVIDIA’s earnings surprise history is also good. It beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 3.56%.

What Lies Ahead for NVDA?

Wall Street analysts maintained their bullish view on the stock, with a recommendation of 1.29 on a scale of 1 to 5 (Strong Buy to Strong Sell), made by 48 brokerage firms. Of these, 41 are Strong Buy and two are Buy. Strong Buy and Buy, respectively, account for 85.42% and 4.17% of all recommendations.

NVIDIA currently has a Growth Score of B, suggesting it will yield the highest return over the next 1-3 months for investors.

Based on short-term price targets offered by 43 analysts, the average price target for NVIDIA comes to $235.51, reflecting an upside of 26.2% from its last closing price of $186.60. 

This overwhelming analyst confidence, combined with a clear short-term growth trajectory, makes a compelling case for gaining exposure to NVIDIA's potential through NVDA-focused ETFs.

NVDA-Heavy ETFs to Buy

The potent mix of bullish ratings (mentioned above) and compelling pre-earnings metrics suggests NVDA shares are poised for a post-third quarter rally, strengthening the case for investing in its ETFs, mentioned below, ahead of the announcement. The fact that these ETFs also hold other prominent industry giants makes them attractive investment options.

VanEck Semiconductor ETF SMH

This fund, with total net assets worth $35.28 billion, offers exposure to 26 companies involved in semiconductor production and equipment. NVDA holds the top spot in this fund, with 18.60% weightage. Its top three holdings include other tech giants — Taiwan Semiconductor (9.49%) and Broadcom (8.04%). 

SMH has surged 40.5% year to date. The fund charges 35 basis points (bps) as fees. It currently sports a Zacks ETF Rank of 1. 

Strive U.S. Semiconductor ETF SHOC

This fund, with net assets worth $131.28 million, is a passively managed ETF offering exposure to 32 U.S.-listed semiconductor stocks. NVDA holds the top spot in this fund, with 20.46% weightage. Its top three holdings include other tech giants — Broadcom (18.53%) and Micron Technology (7.41%).  

SHOC has soared 42.5% year to date. The fund charges 40 bps as fees. It currently flaunts a Zacks ETF Rank of 1.

VanEck Fabless Semiconductor ETF SMHX

This fund, with total net assets worth $157.25 million, offers exposure to 23 companies involved in semiconductor production and classified as a fabless. NVDA holds the top spot in this fund, with 20.74% weightage. Its top three holdings include other tech giants — Broadcom (13.44%) and Advanced Macro Devices (7.48%).   

SMHX has gained 26.5% year to date. The fund charges 35 bps as fees. It currently sports a Zacks ETF Rank of 1.
 

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

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