Nvidia’s Earnings Report Will Be Out on Wednesday, Nov. 19 – How to Play NVDA Stock

Nvidia, Inc.’s (NVDA) earnings and free cash flow for the quarter ending October are scheduled to be released after the market close on Wednesday, November 19. NVDA stock could be volatile ahead of the release. One way to play it is to sell short out-of-the-money puts to set a lower buy-in.

NVDA closed at $190.17 on Friday, Nov. 14. That is off a recent peak of $206.88 on Nov. 3, but still up from a low of $188.15 last Friday, Nov. 7.

But where could it go if earnings surpass analysts’ expectations? 

Setting a $230 Price Target

I discussed this in a recent Barchart article, “Nvidia Looks 22% Undervalued Here Based on Projected FCF Margins – $230 Price Target.”

I set a $230 price target based on expectations that Nvidia will make a 39.0% free cash flow (FCF) margin over the next year. I then divided this FCF estimate by a 2.0% FCF yield (the same as a 50x FCF multiple). 

This is even though Nvidia’s FCF margin last quarter, which ended Aug. 27, was just 28.8%. But its trailing 12-month (TTM) FCF margin was 43.59%, according to Stock Analysis.

So, I figured that, even if Nvidia makes a 28.8% FCF margin for Q3, its TTM figure would still be 39.15%.

That’s why I used a 39% FCF margin to estimate the $230 price target. 

Here’s how that works. Analysts’ revenue forecast for the year ending Jan. 2026 is $207.56 billion, and $290.11 billion for the…