AI Theme Still Running Hot as Nvidia Beats Q2 Earnings Estimates

Heading into Q2 fiscal 2027 earnings, the capital markets wondered if the vaunted chipmaking giant Nvidia still has its mojo. Despite rallying to atmospheric levels over the past three years, this massive upside is already baked into its stock price. Meanwhile, Wall Street has grown more critical of hyperscaler capital expenditures (CapEx) and supply capacity and Nvidia’s earnings help to determine whether the AI buildout theme still has room to run. The results were released Wednesday after the bell and confirmed that this AI trade still has its running shoes on.Key Takeaways: Nvidia delivered another stellar beat for its second quarter of fiscal 2027. Its record $96.2 billion in total revenue marked a 106% year-over-year surge driven primarily by its Data Center division. CEO Jensen Huang highlighted that AI has reached a profitable inflection point. This was supported by a robust Q3 revenue guidance of $108 billion alongside strong shareholder returns. Investors seeking targeted exposure to this continued momentum can utilize concentrated single-stock products, pure-play semiconductor funds, or broader low-cost technology ETFs. Another Earnings Report, Another BeatNvidia bested Wall Street’s expectations thanks to the aforementioned accelerating global AI infrastructure buildout. Total revenue surged 106% year over year to a record $96.2 billion, rising 18%. The company achieved GAAP diluted earnings per share (EPS) of $2.46 and non-GAAP EPS of $2.22. Its gross margins maintained a strong 75.0%.Delving deeper into its revenue generation, the primary growth engine remained the Data Center segment, which generated $89 billion. This constitutes a massive 117% increase from a year ago. CEO Jensen Huang highlighted that compute has become revenue as AI reaches a profitable inflection point, noting that the new Vera Rubin platform has entered full production. Meanwhile, the Edge Computing segment posted $7.2 billion in revenue, which is up 27% year over year. “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said Huang. Furthermore, Nvidia delivered $26.0 billion to shareholders through repurchases and dividends during the quarter, with $99.0 billion remaining under its buyback authorization. Looking ahead, Nvidia issued robust guidance for Q3 fiscal 2027, projecting revenue of $108 billion (±2%) and gross margins of 74.0%. Overall, the company highlighted strong underlying demand from global AI factories, enterprises, and sovereign entities. With Nvidia answering the question of whether the AI buildout theme is still alive and well, now the question is: where do investors turn for exposure?ETFs With Nvidia ExposureInvestors seeking heavy exposure to Nvidia can utilize various exchange-traded funds (ETFs), which range from targeted single-stock instruments, semiconductor-focused funds, and broad technology funds. Single-stock tools suit short-term tactical traders, while semiconductor and broad tech funds offer diversified structural exposure. Single-stock and leveraged ETFs offer the highest concentration levels with a focus on income and/or bullish price appreciation in the short-term investment horizon. These offerings include the FT Vest NVDA & Target Income ETF (XVNV), GraniteShares 2x Long NVDA Daily ETF (NVDL B+), and Tradr 1.75X Long NVDA Weekly ETF (NVDW ). Moreover, traders can also utilize pairs to capitalize on short-term upside or downside via leveraged-inverse products like the Direxion Daily NVDA Bull 2X ETF (NVDU A-) and Direxion Daily NVDA Bear 1X ETF (NVDD A-). The VanEck Fabless Semiconductor ETF (SMHX A-) leads the pure-play sector semiconductor strategies with a 22.83% allocation to Nvidia alongside a 0.35% expense ratio. The VanEck Semiconductor ETF (SMH B) follows closely behind, holding a 21.94% allocation with an identical 0.35% expense ratio. The Strive U.S. Semiconductor ETF (SHOC B-) rounds out the top chip-focused options, maintaining a 21.71% allocation and a 0.40% expense ratio. Outside of pure semiconductor funds, the Global X PureCap MSCI Information Technology ETF (GXPT ) delivers heavy Nvidia exposure within broader tech, carrying a 20.18% allocation and a 0.15% expense ratio. Another fund worthy of mention is the Fidelity MSCI Information Technology Index ETF (FTEC A) for broad-based tech exposure at a cost-efficient 0.08% expense ratio.For more news, information, and strategy, visit ETFdb.