Time for NVIDIA-Heavy ETFs?

NVIDIA Corp NVDA shares have slumped about 3% over the past month (as of March 17, 2026). Although the shares have gained 57.6% over the past year, they have slipped 3.7% this year, raising questions about whether investors should buy the slight dip in NVDA stock. Let’s find out.

NVIDIA Views $1 Trillion in Chip Orders by 2027

At its latest annual GTC conference, NVIDIA CEO Jensen Huang announced that the company now expects to secure up to $1 trillion in chip orders for its next-generation AI platforms — Blackwell and Rubin — by 2027. This is double the $500 billion forecast Huang had projected last year (read: ETFs to Gain as NVIDIA Views $1 Trillion in Chip Orders by 2027).

Note that NVIDIA is strengthening its position in the artificial intelligence (AI) compute market with the launch of its Vera Rubin platform. Vera Rubin boosts efficiency, reduces GPU requirements, and lowers inference costs compared with the Blackwell architecture.

NVIDIA Secures Key Approval to Resume China Chip Sales

NVIDIA has received approval from Beijing to sell its second-most powerful AI chips, clearing a major hurdle that had stalled shipments to China. The decision allows the company to resume sales of its H200 chips in a market that once accounted for 13% of its revenue, per Reuters, as mentioned on Yahoo Finance.

In parallel, NVIDIA is developing a version of its Groq AI chip tailored for the Chinese market, in order to expand its footprint while navigating trade restrictions, as mentioned in the same source.NVIDIA inked a $20 billion deal with American AI company Groq in November, per CNN.

Strong Demand but Lingering Uncertainty

Chinese firms have shown strong interest in the H200 chips, with earlier report from Reuters indicating preliminary approval for major players like ByteDance, Tencent, and Alibaba, as quoted on Yahoo Finance. However, some uncertainty remains, as sources suggest final regulatory conditions may still be in progress.

Analysts Are Bullish on NVDA

Nine out of 15 analysts have raised earnings estimates for the upcoming quarter over the past 30 days, while the Zacks Consensus Estimate for the same period has increased by 13 basis points to 1.73% over the past month.

Impressive Growth Rate

NVIDIA’s earnings are expected to grow by 63.94% this year versus the underlying Semiconductor - General industry’s projected growth rate of 26.70% and the S&P 500’s expected growth of 32.52%. The company’s expected growth rate for next year is also strong at 25.96%, compared with the industry’s 34.50% and the S&P 500’s projected 12.31%.

Decent Valuation

NVDA shares have traded at a Price/Earnings (TTM) multiple of 38.33X versus the underlying Semiconductor - General industry’s multiple of 122.69x. Its price-to-cash-flow (MRFY) ratio stands at 38.78x compared with the industry’s 18.06x. However, NVIDIA’s price-to-book (MRQ) ratio remains high at 28.31x versus the industry’s 2.79x.

NVIDIA-Heavy ETFs in Focus

Against this backdrop, investors can play NVIDIA-heavy exchange-traded funds (ETFs) like VanEck Semiconductor ETF SMH, State Street Technology Select Sector SPDR ETF XLK, Invesco QQQ QQQ and iShares Semiconductor ETF SOXX.

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

Zacks Investment Research

Source Zacks-com