Nvidia Traders Brace for Potential $300 Billion Earnings Move
With Nvidia Corp. due to report an unusually complex quarter as the world’s most valuable company, traders are preparing for a potentially mammoth stock swing.
Bloomberg chart on Nvidia stock fluctuation
According to Bloomberg data, the options-implied move for Nvidia shares the day after earnings is about 8% in either direction. That would equate to close to a $300 billion swing in market value—bigger than all but 25 companies in the S&P 500 Index. And according to strategists at Bank of America, the report carries more risk for the benchmark than the next Federal Reserve meeting or inflation data.
As the poster child of the artificial intelligence trade, Nvidia’s stock has rallied nearly 200% so far in 2024 and its reports have been the biggest event on the earnings calendar for more than a year. But the shares pulled back 1% ahead of the chipmaker’s fiscal third-quarter earnings, due on Wednesday after the market close, and there’s more uncertainty than normal about how the results and guidance will play out.
