In the wake of Nvidia Corp.’s NVDA recent earnings announcement, exchange-traded funds (ETFs) associated with the company have shown diverse responses.
What Happened: As per Benzinga Pro, after the earnings report, GraniteShares 2x Long NVDA Daily ETF NVDL saw a decrease of 3.41% in pre-market trading. Concurrently, T-Rex 2X Inverse NVIDIA Daily Target ETF NVDQ experienced a rise of 3.48%.
Other ETFs like ProShares Ultra Semiconductors USD and Direxion Daily NVDA Bull 2X Shares NVDU also witnessed a decline of 1.90% and 3.48% respectively. On the contrary, Direxion Daily Semiconductor Bull 3X Shares SOXL and iShares Semiconductor ETF SOXX saw an increase of 1.09% and 0.57% respectively.
The varied responses from NVDA ETFs came in the aftermath of Nvidia’s latest quarterly earnings report.
Why It Matters: Nvidia ETFs had shown mixed trading activity prior to the earnings announcement as well. The earnings report revealed that Nvidia had surpassed expectations for the second quarter driven by strong data center revenue.
However, the Jensen Huang-led chip company’s gross margin had contracted from the first quarter, leading to a 3.6% drop in shares in after-hours trading. This could explain the varied responses among Nvidia ETFs following the earnings announcement.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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