Semiconductor exchange traded funds (ETFs) rallied Tuesday ahead of earnings from chip maker Altera (NasdaqGS: ALTR), which reports after the closing bell.

Altera is a top holding in sector ETFs such as Semiconductor HOLDRS (AMEX: SMH), PowerShares Dynamic Semiconductors Portfolio (NYSEArca: PSI) and SPDR S&P Semiconductor ETF (NYSEArca: XSD). All three funds were up more than 1% in afternoon trading Tuesday.

Citadel Securities analysts in an earnings preview for Altera said they’re cautious about the impact from the Japan earthquake as both demand and supply impacts could be material in the short to intermediate term.

Intel (NasdaqGS: INTC) sparked a rally in semiconductor ETFs last week after it reported strong quarterly results.

Semiconductor HOLDRS

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