Nvidia, the AI chip giant and second-most valuable company in the world, is set to report its quarterly results after markets close on Wednesday. The company’s performance could significantly impact the entire stock market, with Nvidia stock expected to move about 6% in either direction by the end of the week, based on an analysis of options pricing data. This movement could place Nvidia’s share price at either $143.92, a 4-month high, or $127.09, which is a bit above its recent close following trade agreements between the U.S. and China.
Nvidia shares have seen a nearly 25% increase in the past month, making the stock up about 1% since the beginning of the year. Technical analysis indicates bullish momentum is on Nvidia’s side ahead of Wednesday’s earnings report. It’s notable that it’s been over a year since Nvidia shares experienced a significant rise following a quarterly report.
Nvidia prepares for earnings impact
In May 2024, the stock surged over 9% after the company announced a 10-for-1 stock split, which played a part in its inclusion in the blue-chip Dow Jones Industrial Average. Despite Nvidia’s earnings consistently surpassing estimates, headlines have not always impressed investors.
The stock fell after each of Nvidia’s three most recent reports, including a nearly 9% drop in February, despite solid demand for its AI-enabling chips. Analysts expect Nvidia to report significant revenue and earnings growth in the most recent quarter. All but two of the Nvidia analysts tracked by Visible Alpha recommend buying the stock.
Their average price target of $164 implies about 25% upside from Friday’s close. Nvidia’s performance in the upcoming earnings report will be closely watched, as it could not only affect its own stock but potentially influence the broader market, given its significant role in the AI and semiconductor sectors.