Intel (NASDAQ: INTC) was already on a torrid pace to start 2020, one that should continue. The catalyst is easy to spot: Dow component Intel forecast revenue of $19 billion for the current quarter, $1 billion above Wall Street estimates.
“Perhaps even more important for the broader industry, Intel’s data center revenue in the fourth quarter also expanded by 19%, compared with the same period a year ago,” according to Bloomberg. “That beat the average of analyst estimates compiled by Bloomberg at 5.3%.”
Here are some Intel-heavy exchange traded funds to consider today and over the near term.
VanEck Vectors Semiconductor ETF (SMH)
Nearly 300 ETFs have Intel exposure, but among non-leveraged funds, the VanEck Vectors Semiconductor ETF (NYSE: SMH) leads the way with an Intel allocation of 10.43%, making it the only non-leveraged ETF with a double-digit weight to the chip giant.
In addition to Intel's impact on SMH, what's relevant about SMH today and over the near term is the aforementioned data center demand commentary from the company.
Direxion Daily Semiconductor Bull 3X Shares (SOXL)
The Direxion Daily Semiconductor Bull 3X Shares (NYSE: SOXL) is a favorite of active traders looking to capitalize on short-term moves in semiconductor stocks.
SOXL attempts to deliver triple the daily returns of the PHLX Semiconductor Sector Index (XSOX). That index happens to devote just over 20% of its combined weight to Nvidia, Intel and AMD, in that order.
Traders have added $7.65 million to SOXL this month.
First Trust Nasdaq Semiconductor ETF (FTXL)
Often overlooked in the chip ETF conversation, the First Trust Nasdaq Semiconductor ETF (NASDAQ: FTXL) has one of the larger Intel weights at 7.57%. Fortunately, the fund's largest holding is Skyworks Solutions, Inc. (NASDAQ: SWKS), another chip stock that has been on a tear as of late.
FTXL uses a unique weighting scheme, which includes scoring stocks by volatility, cash flow to price (value) and 3-, 6-, 9- and 12-month average price appreciation.