Chipmaker Nvidia (NVDA, Financial) will be announcing its quarterly earnings Wednesday post-market, with options traders preparing for a big shift in its market capitalization. Implicit volatility, according to ORATS, an options analytics tool, indicates an 8.5% stock price movement, therefore implying an estimated $292 billion change in market value.
The suggested action fits the historical swings of Nvidia post-earnings over the past three years. Given Nvidia's valuation, though, which has skyrocketed to $3.44 trillion, such a movement exceeds the total market capitalization of most S&P 500 businesses and marks one of the biggest possible value swings in history.
While Nvidia's actual post-earnings price swings have often under met market expectations, larger-than-expected movements have usually skewed higher, according to Matt Amberson, ORATS founder. Strategist Christopher Jacobson of Susquehanna Financial Group also pointed out a larger chance of an upward surprise.
The results are crucial since Nvidia's leadership in the AI hardware industry—especially in generative AI which makes it a bellwether for more general market trends. With prospective guidance updates closely scrutinized for supply chain and growth outlooks, analysts project third-quarter sales of $33.13 billion, an 82.8% YOY rise.
