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NVIDIA’s Earnings Report: Volatility and AI Momentum

Published 22/05/2024, 12:57

NVIDIA Corporation (NASDAQ:NVDA) is preparing to release its earnings report today, Wednesday 22 May 2024, after market close.

Traders are anticipating a significant market move, and while expectations for volatility are somewhat subdued compared to previous quarters, the implications remain substantial.

NVIDIA’s options are signalling an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert.
This translates to a staggering $200 billion market cap swing, surpassing the market capitalisation of approximately 90% of S&P 500 companies.

However, this implied move falls short of the 16.4% surge witnessed after the company’s most recent quarterly earnings report. It also appears less aggressive than the average 12% move priced in by traders over the last eight quarters.

With an impressive 87% year-to-date gain, NVIDIA is considered a bellwether for the burgeoning AI industry.
Its market value of approximately $2.3 trillion places it as the third-largest company on Wall Street, trailing only Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL).

Wall Street is eagerly anticipating a blowout quarterly report from NVIDIA, given its pivotal role in shaping the AI landscape.

Investor interest in AI extends beyond NVIDIA, in fact, the benefits of AI are broadening to sectors such as power, commodities, and utilities.

Despite the muted volatility, the upcoming earnings report is unlikely to be uneventful for NVIDIA’s share price.

NVIDIA is expected to post earnings of $5.59 per share and a quarterly revenue increase to $24.65 billion, up from $7.19 billion a year ago.

As the tech world awaits NVIDIA’s earnings report, all eyes are on the AI industry’s trajectory and the impact it may have on the broader market.

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