Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on all things finance. Today, we take a closer look at the upcoming earnings report from chipmaker Nvidia and the potential impact on the market.
Traders are gearing up for a big move in Nvidia’s shares after the company reports its earnings this Wednesday. According to data from options analytics firm Trade Alert, Nvidia’s options suggest an 8.7% swing in either direction by Friday. While this is significant, it falls short of the 16.4% jump seen after the company’s last earnings report.
Nvidia, known as a bellwether of the AI industry, has seen a massive 87% increase in its stock price this year, with a market value of $2.3 trillion. With Wall Street expecting a blowout quarterly report, investor interest has also spread to other AI beneficiaries in the market.
BofA strategists predict that Nvidia will drive 9% of the S&P 500 earnings growth over the next 12 months. However, options traders are not ruling out the possibility of further upside for the stock, as implied volatility for out of the money calls is comparable to that of out of the money puts.
As Nvidia is expected to post earnings of $5.59 a share and a rise in quarterly revenue, investors will be closely watching for any surprises in the report. Chief strategist at Interactive Brokers, Steve Sosnick, warns that a downturn in Nvidia could test investors’ resolve in the broader AI trade, highlighting the significance of the company’s performance.
With so much anticipation and speculation surrounding Nvidia’s earnings report, the market is poised for potential volatility and market-moving shifts. Stay tuned to Extreme Investor Network for the latest updates and analysis on this developing story.
(Source: Reuters)