Nvidia Earnings Preview: Traders Brace for 7% Stock Swing Amid AI Demand Scrutiny
Nvidia Corp. faces heightened expectations as it prepares to report quarterly results after Wednesday's close. Options markets imply a 7% move in either direction—potentially reclaiming last week's $199 peak or testing September lows NEAR $174. The chipmaker's recent earnings outperformance has paradoxically triggered selloffs, with shares declining post-report in three of the past four quarters.
Rival AMD's tempered AI reception and sector-wide valuation concerns raise the stakes. Analysts project 60% revenue growth, but the market's appetite for AI-exposed stocks shows signs of fatigue. Nvidia's ability to surpass already-elevated benchmarks will determine whether this earnings release breaks or extends the sell-the-news pattern.