Shares of NVIDIA NVDA dipped slightly in after-hours trading on Aug. 26, 2026, as investors digested the AI giant's second-quarter fiscal 2027 financial results, despite another top- and bottom-line beat.
As NVDA continues to lead the AI landscape, this modest pullback in its share price might entice investors to increase their exposure to the stock right away, particularly after its CEO projected 70% revenue growth for fiscal 2028, well above Wall Street’s 44% growth forecast (as cited in CNBC).
However, risks remain, with NVIDIA heavily reliant on Taiwan Semiconductor TSM to fabricate its next-generation Vera Rubin chips, leaving its supply chain vulnerable to geopolitical tensions. The company also faces margin pressure from soaring memory costs.
Nevertheless, the tech giant remains the cornerstone of the AI boom, bolstered by robust analyst consensus and sustained demand.
Against this backdrop, investors seeking to capitalize on the AI giant’s strong price momentum while mitigating company-specific risks may consider adding exchange-traded funds (ETFs), with significant exposure to NVDA, to their portfolios.
But before diving into these ETFs, let us check NVDA’s overall performance in the second quarter of fiscal 2027, in terms of key operational and financial metrics.
NVDA’s Q2 Results
NVIDIA’s fiscal second-quarter earnings beat the Zacks consensus estimate by 6.2%, while its revenues beat the consensus mark by 4.8%.
Revenues from the company’s AI Clouds, Industrial, and Enterprise (“ACIE”) segment surged a solid 138% year over year, driven by NeoCloud capacity additions to meet the rising demand from enterprises, AI start-ups and sovereigns as well as hyperscalers purchasing capacity to supplement their own build-outs.
With rising adoption of agentic AI driving an acceleration in demand for datacenter CPUs, NVIDIA’s Grace CPU generated solid revenues of more than $5 billion, on a trailing 12-month basis, in the reported quarter. To this end, the company continues to see approximately $20 billion in demand for server CPUs.
However, the company continues to face gross margin pressure owing to cost pressures from high-performance memory.
In terms of meaningful collaborations, NVIDIA expanded its partnership with AWS, building on its already vast installed base of NVIDIA compute. AWS plans to deploy an additional 2 million GPUs from the fiscal third quarter through the second quarter of fiscal 2029.
The company also joined hands with Noetra, Japan's national AI company, to build an NVIDIA DSX AI factory that will create open models to power AI agents, digital twins, robotics and physical AI applications
NVDA’s NeoCloud partners are expected to exit calendar 2026 with 8 gigawatts (GW) of total installed capacity, up from approximately 3 GW at the end of 2025.
NVIDIA also expects its Vera to be deployed by every major hyperscaler, NeoCloud, AI lab and system OEM, with shipments already underway to its leading partners. It also expects to begin volume shipments of Groq 3 LPX later this quarter, with Nebius serving as the first early adopter.
NVDA-Heavy ETFs to Buy
Strive U.S. Semiconductor ETF SHOC
This fund, with net assets worth $228.5 million, offers exposure to U.S.-listed semiconductor companies. Of these, NVDA holds the first position, with a 21.51% weight.
SHOC has surged 49.9% year to date. The fund charges 40 basis points (bps) in fees and sports a Zacks ETF Rank #1 (Strong Buy).
Fidelity MSCI Information Technology Index ETF FTEC
This fund, with net assets worth $19.85 billion, offers exposure to information technology stocks. Apple AAPL holds the first position in this fund, with a 17.40% weight, while NVDA holds the second position with a 16.52% weight.
FTEC has escalated 25.4% year to date. The fund charges 8 bps in fees and sports a Zacks ETF Rank #1.
VanEck Semiconductor ETF SMH
This fund, with net assets worth $67.88 billion, offers exposure to companies involved in semiconductor production and equipment. NVDA holds the first position in this fund, with a 21.71% weight.
SMH has surged 54.3% year to date. The fund charges 35 bps in fees and sports a Zacks ETF Rank #1.
iShares U.S. Technology ETF IYW
This fund, with net assets worth $24.81 billion, offers exposure to software, semiconductors and tech hardware companies in the United States. NVDA holds the first position in this fund, with a 13.75% weight.
IYW has risen 23.5% year to date. The fund charges 38 bps in fees and sports a Zacks ETF Rank #1.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).