ETFs in Focus Post Intel's Q4 Earnings Beat

Intel INTC reported strong fourth-quarter 2024 results, beating estimates on both earnings and revenues. However, the chipmaker offered a downbeat outlook for the ongoing quarter. 

See the Zacks Earnings Calendar to stay ahead of market-making news.

Intel shares gained as much as 4% in aftermarket hours. Investors should keep a close eye on the ETFs having the highest allocation to the semiconductor player and tap the opportunity when it rises. These include First Trust Nasdaq Semiconductor ETF FTXL, REX FANG & Innovation Equity Premium Income ETF FEPI, Xtrackers Semiconductor Select Equity ETF CHPS and VanEck Vectors Semiconductor ETF SMH.

Intel Q4 Earnings in Focus

Intel reported earnings per share of 13 cents, which beat the Zacks Consensus Estimate by a penny but declined from the year-ago earnings of 54 cents. Revenues dipped 7% year over year to $14.3 billion but edged past the estimated $13.78 billion. 

Client computing and data center and AI revenues declined 9.3% and 3.3%, respectively, while network and edge revenues climbed 10.3%. Intel Foundry revenues dropped 13% (see: all the Technology ETFs here).

Intel ended 2024 with its lowest revenues in more than a decade after posting the third straight annual decline. 

The chipmaker is in the midst of a turnaround plan, focused on developing advanced AI processors and third-party foundry businesses, as it aims to recoup the technological edge it lost to Taiwan Semiconductor Manufacturing Co. TSM, the world's largest contract chipmaker, and regain market share lost to rival AMD AMD.

For the current quarter, Intel projects revenues of $11.7-$12.7 billion, below the Zacks Consensus Estimate of $12.84. It expects adjusted earnings to break even, again well below the Zacks Consensus Estimate of 8 cents.

ETFs in Focus

First Trust Nasdaq Semiconductor ETF (FTXL)

First Trust Nasdaq Semiconductor ETF offers exposure to the most liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 31 stocks in its basket, with Intel taking the fourth spot at 7.6% share. 

First Trust Nasdaq Semiconductor ETF has $316.2 million in AUM. The average trading volume is good at around 270,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #1 (Strong Buy).

REX FANG & Innovation Equity Premium Income ETF (FEPI)

REX FANG & Innovation Equity Premium Income ETF is an actively managed ETF providing exposure to leading tech firms within the equally weighted FANG & Innovation Index. It aims for enhanced income by selling out-of-the-money call options, harnessing big tech’s volatility while capping some of the potential stock gains. FEPI also uses the covered call approach to counterbalance potential market declines, seeking to offer mitigation from price declines on these big tech stocks.

REX FANG & Innovation Equity Premium Income ETF holds 70 stocks in its basket with Intel occupying the eighth spot with 6.7% share. It trades in average daily volume of 178,000 shares.

Xtrackers Semiconductor Select Equity ETF (CHPS)

Xtrackers Semiconductor Select Equity ETF seeks to track the Solactive Semiconductor ESG Screened Index. It holds 52 stocks, with INTC being the 13th firm with a 4% share. Xtrackers Semiconductor Select Equity ETF charges 15 bps in annual fees and has AUM of $6.8 million. It trades in an average daily volume of 1,000 shares.

VanEck Vectors Semiconductor ETF (SMH)

VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index, which tracks the most liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket, with Intel occupying the fourth position at 3.5% (read: Will the Rise of DeepSeek Usher in a New AI Era? ETFs in Focus).  

VanEck Vectors Semiconductor ETF has managed assets worth $23 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 6 million shares and has a Zacks ETF Rank #1 with a High risk outlook.

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