Key Takeaways
- Nvidia is scheduled to release quarterly results after the closing bell Wednesday, with Wall Street analysts expecting the AI chipmaker to report a roughly 60% increase in revenue.
- Options pricing suggests traders expect Nvidia’s stock could move nearly 7% in either direction after the results.
Nvidia is set to report its latest quarterly results after the closing bell Wednesday, with traders expecting a big move in the AI chipmaker’s stock.
Options pricing suggests traders expect Nvidia (NVDA) shares could move nearly 7% in either direction by the end of the week. A move of that size from Monday’s close near $187 could help the shares recover some of their recent losses to return to last week’s levels around $199, or pull them down to about $174, a level not seen since September.
In recent quarters, Nvidia’s earnings have tended to be a sell-the-news event, despite a string of record-breaking results. In all but one of the most-recent four quarters, the chipmaker’s stock finished the week lower than its levels heading into the event.
With expectations riding high ahead of the earnings, and results from rival Advanced Micro Devices (AMD) and other AI favorites indicating investors may be harder to impress this season, Nvidia could face an increasingly difficult bar to clear.
Why This Matters for Investors
This year’s big rally in AI stocks, which made Nvidia the world’s most valuable public company by market capitalization, has fueled worries about an AI bubble, and investors will be watching closely whether the chipmaker can deliver on its ambitious growth targets. Nvidia’s earnings release is the most highly anticipated event of the earnings season, and it’s likely to have a big impact on the broader stock market.
Nvidia is seen reporting adjusted third-quarter earnings per share of $1.26 on a nearly 60% year-over-year jump in revenue to a record $55.4 billion, according to estimates collected by Visible Alpha.
Whisper numbers could be even higher, with analysts from Jefferies and Wedbush telling clients recently that they expect the AI darling to “beat and raise,” or top analysts’ quarterly projections as well as lift its full-year outlook.
Still, Wall Street analysts are widely bullish Nvidia’s stock has room to rise after a nearly 40% gain in 2025 so far. All but one of the 13 analysts with current ratings compiled by Visible Alpha call it a “buy,” with their mean target near $219 suggesting roughly 17% upside from Monday’s close.
Shares of Nvidia slid about 2% Monday amid broader tech sector losses.
