Nvidia (NasdaqGS: NVDA) weighed on semiconductor exchange traded funds Friday as the stock lost about 7% after the company reported quarterly earnings and offered a disappointing outlook.

Nvidia announced first-quarter earnings that beat expectations. “However, guidance for the second quarter was a bit light versus our expectations,” BMO Capital Markets said in a note.

Also, earnings growth will need to be driven by revenue upside as margin improvement is likely to become increasingly difficult, added Deutsche Bank analysts.

Nvidia accounts for about 4% of iShares PHLX SOX Semiconductor Sector Index Fund (NasdaqGM: SOXX). The ETF is up 9% so far this year.

iShares PHLX SOX Semiconductor Sector Index Fund

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