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nvidia Investors are expecting volatile movements in the stock after the company reports earnings.
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Traders are pricing in a move of $300 billion, or 8%, according to options data compiled by Bloomberg.
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All eyes will be on the company’s future guidance on its next-generation AI chip, Blackwell.
Nvidia investors are bracing for volatile moves in Nvidia stock after the chip titan. Third quarter performance reportMarket prices moved 8% following the results, according to data compiled by Bloomberg.
This change represents a gain or loss of $300 billion in market value. As of 10:30 a.m. Tuesday, the total market capitalization of the stock was valued at $3.5 trillion.
The chipmaker, which is scheduled to report earnings after the market close, was down 1.8% Tuesday morning, with traders seeing little room for error as the world’s biggest company by market capitalization hit a record high.
Investors expect the company to report revenue of $33 billion in the third quarter, an 83% increase from the same quarter last year.
In particular, all eyes will be on the company’s guidelines. blackwellWall Street is looking for clues about how strong demand will be for next-generation GPUs.
In October, Huang explained: Demand for Blackwell With “crazy”.
Nvidia could exceed its earnings by more than $2 billion and reach a valuation of more than $4 trillion by 2025, strategists at Wedbush Securities said Wednesday.
“Blackwell represents the next frontier of Nvidia and the entire AI revolution, and we believe the Street is still underestimating the demand curve over the next 12-18 months and beyond. Cloud numbers and AI data points from Redmond, Amazon, and Google have been strong. During last month’s earnings season, this indicates that large-scale enterprise AI demand is now underway,” the company wrote.
“Starting in the fourth quarter, Nvidia’s new Blackwell GB200 GPUs will dominate sales for the next few years,” added Louis Navellier, chief investment officer at Navellier & Associates. “Nvidia has no competitors, having invested approximately $2 billion in the development of Blackwell GPUs, and we do not expect any competitors to ‘break’ Nvidia’s generative AI monopoly as it develops Blackwell’s much more powerful GPU successors.”
But some forecasters worry that high investor expectations could send Nvidia’s stock price lower even if the company beats its earnings. That’s what happened after the last quarterly report that saw Nvidia stock take a brief look. sale Despite the overall good results.
