Nvidia Q3 Earnings to Spark $292 Billion Swing in Market Value

Nvidia’s upcoming quarterly results are expected to trigger a nearly $300-billion swing in the chipmaker’s market value, according to US options market data. The AI-chipmaker’s market cap has grown to $3.44 trillion, making this move close to its largest ever.

This expectation is based on Nvidia’s past performance, where post-earnings moves have typically undershot market expectations but larger-than-expected moves tend to be to the upside. In the last 12 quarterly earnings reports, five post-earnings moves have been outside expected market expectations, with all of them resulting in higher stock prices.

Traders are assigning a slightly higher probability to an outsized move to the upside than to the downside, according to Christopher Jacobson, a strategist at Susquehanna Financial Group. The chipmaker’s results could be a key factor in determining the market’s trajectory.

Nvidia has consistently beat Wall Street revenue expectations and is expected to report third-quarter sales surging 82.8% to $33.13 billion. However, with analysts expecting slower growth, how the company overcomes delays and supply-chain issues will be crucial for its stock price.

The chipmaker’s shares finished down 1.3% on Monday but are up about 180% for the year, making it one of the top performers in the S&P 500 index. Investors are turning their focus to Nvidia following a post-U.S. election rally that has stalled in recent days.

Nvidia’s market value swing is expected to dwarf the market cap of about 95% of S&P 500 constituents, underscoring the significance of its results.

Source: https://finance.yahoo.com/news/nvidias-options-primed-300-billion-110338738.html