Nvidia’s upcoming earnings report has traders on high alert for a potential significant change in the company’s stock price. Options markets in the US are indicating an expected 8.7% swing in Nvidia shares, which could equate to a market capitalization fluctuation of $200 billion. Despite this, the anticipated volatility is smaller than previous quarters, with the last report showing a 16.4% jump in stock price.
Nvidia, a key player in the artificial intelligence industry with a market value of around $2.3 trillion, is expected to deliver a strong quarterly report. Analysts suggest that Nvidia will contribute 9% of the S&P 500’s earnings growth over the next year. The benefits of AI are also expanding to other sectors such as energy, commodities, and utilities.
Matt Amberson, founder of ORATS, notes that traders are not discounting the potential for higher gains in Nvidia stock, as implied volatility for out-of-the-money calls and puts are roughly equal. Nvidia is expected to report earnings of $5.59 per share and an increase in quarterly revenue to $24.65 billion.
Analysts anticipate strong results from Nvidia’s earnings report, with projections aligning closely with LSEG data. Some analysts predict a potential rebound of around 30% for Nvidia, reflecting the market sentiment that advances in artificial intelligence technology could impact the stock’s performance positively.
There is a lot at stake in the AI trade, according to Steve Sosnick, the chief strategist at Interactive Brokers, who mentions that a slowdown in Nvidia could challenge investor confidence in the broader AI market. The high expectations surrounding Nvidia’s performance emphasize the importance of its earnings report.
Overall, traders are preparing for a significant change in Nvidia’s stock price following the upcoming earnings report, with expectations of strong quarterly results and continued growth in the AI sector. Analysts are optimistic about Nvidia’s performance, with projections aligning closely with data from LSEG. The potential for a significant rebound in stock price reflects market sentiment towards Nvidia’s advances in artificial intelligence technology.
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https://www.benzinga.com/news/24/05/38933942/traders-brace-for-major-swing-in-nvidia-stock-ahead-of-earnings-report-expect-up-moves-to-be-as-viol
