Option traders are reportedly expecting about $260B- $270B moves in Nvidia’s (NASDAQ:NVDA) market value in either direction after the semiconductor giant reports its second quarter earnings after markets close on Wednesday.
Following the result, options indicated around 6% move for Nvidia shares in either direction, reported Reuters, which is below the 7% long-term average swing.
According to Bloomberg’s Equity Insight, the 6.1% implied move is in fact the lowest anticipated post-earnings swing for Nvidia since the company’s earnings for the first quarter of 2024 published in May 2023.
Wall Street expects the company to report Q2 EPS of $1.01, implying a 48.5% increase, while revenue is expected to jump 53.6% to $46.13B during the quarter.
Investors will keep an eye on the potential impact of Nvidia’s agreement to hand over its 15% revenue from their Chinese AI chip sales to the U.S. government in exchange for export licenses.
Shares of the semiconductor giant gained over 35% so far this year, outperforming the broader S&P500 Index, which rose nearly 10% during the same period.
“Transition to Blackwell architecture and sovereign AI initiatives drive higher margins and sustained revenue growth, with no signs of demand disruption or saturation,” highlighted Seeking Alpha analyst Danil Sereda, rating the stock as Buy.
Looking at Seeking Alpha’s Quant Rating, NVDA has a Hold rating with a score of 3.46 out of 5. The company received an A+ for profitability, A for growth and A- for momentum, but an F grade in valuation dragged down the rating.
Seeking Alpha analysts are also cautious and rated the stock as Hold, while Wall Street analysts are bullish and rated NVDA as Strong Buy.