Chip-focused ETFs surge along with Nvidia's earnings-fueled rally
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An earnings-related rally in Nvidia (NASDAQ:NVDA) elevated chip- and technology-focused exchange traded funds during Thursday's intraday trading.
NVDA is owned by 361 different ETFs and forms a major part of ProShares Ultra Semiconductors (NYSEARCA:USD), which has a portfolio allocation of 18.81% towards the computer chip maker. This represents the highest concentration of NVDA in any ETF on the market, according to data provided by ETF.com.
USD rose 6.2% in Thursday's intraday session led by ~13% jump in NVDA. The rally also included other ETFs with a relatively high concentration of NVDA stock: AXS Esoterica NextG Economy ETF (BATS:WUGI) +1.4% and VanEck Semiconductor ETF (NASDAQ:SMH) +2.07%.
NVDA shares surged after the company reported upbeat Q4 results and strong guidance. The company sees Q1 total revenue of $6.5B vs. consensus of $6.38B.
Looking at NVDA's peers, Taiwan Semiconductor (TSM) and Advanced Micro Devices (AMD) were also higher during midday trading session, rising by 3.4% and 2.4%, respectively. 
Not every stock in the sector showed a substantial move. Broadcom (AVGO), another top holding for the ProShares Ultra Semiconductors (USD), was basically flat in midday trading. Other major holdings for USD include Texas Instrument (TXN) and QUALCOMM (QCOM), which showed slight gains in midday trading. Intel (INTC) showed a slight decline.
Looking at single-stock leveraged ETFs tied to NVDA, GraniteShares 1.5x Long NVDA Daily ETF (NVDL) is up 19% in Thursday's intraday session. On the other side of the spectrum, AXS 1.25X NVDA Bear Daily ETF (NVDS), an inverse fund meant to move in the opposite direction of NVDA shares, is down 16%.
Looking at the YTD performance for NVDA and its peers: NVDA gained about 64%; AMD ~+23%, QCOM +16%, and TSM +21.2%.
Movement for ETFs related to NVDA so far this year: USD +43%; WUGI +16%. SMH +19% and SPRX +20.5%.
Following the strong results and guidance, many Wall Street analysts raised their price target on the stock:

Evercore ISI raised the price target to $300 from $245.
Wedbush raised the price target to $216 from $175.
BMO raised the price target to $255 from $240.
Craig-Hallum raised the price target to $190 from $165.
Jefferies raised the price target to $300 from $275.
Needham raised the price target to $270 from $230.
Truist raised the price target to $266 from $238.
BofA raised the price target to $275 from $255.
Cowen raised the price target to $260 from $240.
Morgan Stanley raised the price target to $255 from $246.
Wells Fargo raised the price target to $275 from $250.
Baird raised the price target to $230 from $150.
Stifel raised the price target to $225 from $207.
Oppenheimer raised the price target to $275 from $250.
JPMorgan raised the price target to $250 from $220.

Meanwhile, in Thursday's intraday action, the broader market index SPY (SPY) and S&P 500 (SP500) fell 0.3%, Nasdaq Composite (COMP.IND) -0.3% and Dow Jones (DJI) -0.6%.

For more in-depth valuation analysis of NVDA stock, click here.