NEW YORK (Reuters) – Options traders are anticipating a nearly $300 billion swing in Nvidia’s market value after the chipmaker reports its quarterly results on Wednesday. U.S. options market data indicates Nvidia options imply an 8.5% swing in either direction after the earnings report, which will be released after the market close. This expectation aligns with previous percentage moves following the past 12 quarters of results. Moreover, Nvidia earnings forecast indicates potential for significant surprises. #NvidiaEarningsForecast
With Nvidia’s market cap now at $3.44 trillion, the projected swing is nearly the largest ever, approximately $292 billion. This move would surpass the market cap of about 95% of S&P 500 companies. Historically, post-earnings moves in Nvidia’s stock have typically been smaller than anticipated, although unexpected shifts have often been to the upside, according to ORATS founder Matt Amberson.
Of the last 12 quarterly earnings, five post-earnings moves exceeded expectations, all resulting in stock price gains. Christopher Jacobson, a Susquehanna strategist, noted traders are assigning higher odds to a major upside. Nvidia’s earnings could greatly impact market direction. Investor attention has shifted to Nvidia following a recent U.S. election rally slowdown.
“The market will extrapolate whatever Nvidia says to the entire AI trade,” said Nancy Tengler, CEO and chief investment officer at Laffer Tengler Investments, in a note.
Nvidia has surpassed high Wall Street revenue expectations for the past eight quarters. However, with analysts predicting slower growth, how Nvidia manages delays and supply-chain issues will be crucial for its stock performance.
The chipmaker is projected to report a third-quarter sales increase of 82.8%, reaching $33.13 billion, based on data compiled by LSEG. #NvidiaEarningsForecast
On Monday, Nvidia’s stock closed down 1.3%, settling at $140.15. Despite this dip, the stock has gained around 180% this year, making it one of the S&P 500’s top performers.
How Nvidia Earnings Forecast Shapes Market Trends and AI Growth
Historically, post-earnings moves often defy expectations, with five of the last twelve quarters seeing larger-than-expected upward shifts. Hence, investors remain alert to possible trends, especially given Nvidia’s vital role in AI development. Additionally, Nvidia earnings forecast highlights its influence on broader market dynamics.
