Nvidia Earnings: Options Market Predicts 10% Stock Swing as Analysts Forecast 73% Revenue Surge
Staff Editor Nvidia Stock Poised for Significant Move Following Earnings Report
Nvidia Corporation’s stock is bracing for a potential 10% swing following its upcoming earnings report, according to options market indicators. The tech giant, currently trading at $130.82 per share, could see its stock price shift to either $117 or $143, representing a substantial market value fluctuation of approximately $300 billion.
Since June, Nvidia’s stock has been confined to a trading range between $120 and $140. The company’s previous earnings report in August resulted in a 7% decline over three days, as investors recalibrated their growth expectations.
For the current quarter, analysts are projecting a robust 73% increase in Nvidia’s revenue, estimating it to reach $38.2 billion, up from approximately $20 billion in the previous year. This optimistic outlook is reflected in Wall Street’s sentiment, with most analysts anticipating an upward movement in Nvidia’s stock. The average 12-month price target is set at an ambitious $175.
The options market’s prediction of a 10% move is derived from the cost of an at-the-money options straddle. For instance, with Nvidia’s share price at $130.82 and a straddle cost of $12.45, the implied move calculates to 9.5%.
As investors and analysts eagerly await Nvidia’s earnings announcement, all eyes will be on the accuracy of the options market’s prediction and the subsequent stock movement. The outcome of this report could potentially break Nvidia out of its recent trading range and set a new direction for the stock in the coming months.
