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Key takeaways
- Nvidia is scheduled to release quarterly results after the closing bell on Wednesday, with Wall Street analysts expecting the artificial intelligence chip maker to report a nearly 60% increase in revenue.
- Options pricing indicates that traders expect Nvidia stock to move about 7% in either direction after the results.
Nvidia is set to report its latest quarterly results after the closing bell on Wednesday, with traders anticipating a big move in the AI chip maker’s shares.
Options pricing indicates that traders expect Nvidia (NVDA) shares to move approximately 7% in either direction by the end of the week. A move of this magnitude from Monday’s close near $187 could help stocks recover some of their recent losses to return to last week’s levels around $199, or pull them back to around $174, a level not seen since September.
In recent quarters, Nvidia’s earnings have tended to be a selling news event, despite a string of record results. In all but one of the last four quarters, the chipmaker’s stock ended the week below its pre-event levels.
With rising pre-earnings expectations, and results from rival Advanced Micro Devices (AMD) and other AI favorites suggesting it may be difficult to convince investors this season, Nvidia may face an increasingly difficult hurdle to clear.
Why is this important to investors?
This year’s surge in AI stocks, which has made Nvidia the world’s most valuable public company by market capitalization, has raised concerns about an AI bubble, and investors will be watching closely whether the chipmaker can meet its ambitious growth goals. Nvidia’s earnings release is the most anticipated event of earnings season, and will likely have a major impact on the broader stock market.
Nvidia was seen reporting third-quarter adjusted earnings per share of $1.26 with a nearly 60% increase in year-over-year revenue to a record $55.4 billion, according to estimates compiled by Visible Alpha.
The whisper numbers could be even higher, with analysts from Jefferies and Wedbush recently telling clients they expect the AI darling to “outperform and raise” or top analysts’ quarterly forecasts as well as raise their full-year forecasts.
However, Wall Street analysts are broadly optimistic that Nvidia shares have room to rise after gains of nearly 40% in 2025 so far. All but one of the 13 analysts with current ratings compiled by Visible Alpha are calling it a “buy,” with their average target near $219 suggesting an upside of about 17% from Monday’s close.
Nvidia shares fell about 2% on Monday amid widespread losses in the technology sector.
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