Nvidia's Earnings to Decide Fate of Momentum ETFs Amid AI-Driven Sell-Off

Nvidia's upcoming earnings could decide the fate of momentum stocks and the ETFs that track them. Goldman Sachs traders note that momentum stocks have historically rebounded after sharp declines, but valuations are high and the AI trade is under pressure. ETFs such as the iShares MSCI USA Momentum Factor ETF and Invesco Dorsey Wright Momentum ETF offer exposure to high-octane growth stocks, making them sensitive to Nvidia's earnings.

Nvidia's (NVDA) upcoming earnings report, scheduled for August 27, 2025, is poised to significantly influence the performance of momentum stocks and the ETFs that track them. Goldman Sachs traders have noted that momentum stocks, which have historically rebounded after sharp declines, are currently under pressure due to high valuations and the broader AI trade's challenges [1].

The iShares MSCI USA Momentum Factor ETF (MTUM) and the Invesco Dorsey Wright Momentum ETF are two prominent ETFs that offer exposure to high-octane growth stocks, making them particularly sensitive to Nvidia's earnings. According to the latest data, MTUM has seen a 24.42% year-to-date return, with significant exposure to technology stocks such as Nvidia, Broadcom (AVGO), and Amazon (AMZN) [3].

Nvidia's CEO Jensen Huang recently praised Taiwan Semiconductor Manufacturing Company (TSMC) as "one of the greatest companies in the history of humanity," highlighting the critical role TSMC plays in AI chip production and the broader tech industry [2]. This endorsement could boost investor confidence in both Nvidia and TSMC shares, potentially leading to short-term price surges. Traders might consider entry points around current support levels for Nvidia, which has hovered near $120 in recent sessions, while watching for resistance at $130.

In the cryptocurrency market, tokens like Fetch.ai (FET) and Render (RNDR) have shown strong correlations with Nvidia's stock movements. During Nvidia's earnings beats in 2024, FET saw 15-20% rallies within 24 hours. Traders should look for volume increases in FET/USDT pairs on major exchanges, targeting breakouts above $1.50 for FET, with a 24-hour change monitoring [2].

The broader market implications of Nvidia's earnings report are significant. If the company reports strong results, it could drive institutional flows into tech equities and AI-focused assets, potentially boosting related ETFs and crypto tokens. Conversely, if Nvidia's results are disappointing, it could lead to a sell-off in momentum stocks and ETFs.

In conclusion, Nvidia's upcoming earnings report is likely to have a substantial impact on momentum stocks and ETFs. Investors should closely monitor the company's performance and be prepared for potential market reactions. As always, it is essential to conduct thorough research and stay informed about the latest developments in the tech and crypto markets.

References:
[1] https://finance.yahoo.com/news/live/earnings-live-zoom-stock-jumps-as-markets-turn-their-focus-to-nvidia-earnings-210250806.html
[2] https://blockchain.news/flashnews/nvidia-nvda-ceo-jensen-huang-calls-tsmc-tsm-a-historic-great-2025-signal-for-ai-chips-and-crypto-market-impact
[3] https://money.usnews.com/funds/etfs/large-growth/ishares-msci-usa-momentum-factor-etf/mtum