Nvidia Reports Earnings Wednesday. Here's How Much the Stock Is Expected to Move

Nvidia shares are up 16% from the start of the year. Chen Yuyu / VCG / Getty Images Close Key Takeaways Nvidia is due to report earnings Wednesday afternoon, with options pricing suggesting traders see the stock swinging up to 6% by the end of the week following the results. Analysts expect sales and profits roughly doubled from a year ago as big tech companies pour billions of dollars into AI data centers. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Ask anything to get started... ASK Nvidia is scheduled to post earnings after the closing bell on Wednesday, with traders anticipating a big move from the AI chip leader’s stock. Based on current options pricing, traders expect Nvidia ( NVDA ) shares could swing up to 6% in either direction by the end of the week following the results. A move of that size from Thursday’s close could push the shares as high as $229, approaching their May record just above $236, or drag the stock back below $205. Nvidia shares have climbed 16% since the start of the year, but are still down some 8% from their May highs after a broader pullback in the AI trade amid concerns around the sustainability of spending on America’s AI buildout. Why This Matters to Investors Nvidia could face a particularly challenging setup heading into Wednesday’s earnings, as worries about an AI bubble have weighed on sentiment. Though analysts widely expect Nvidia to post strong results, quarterly reports have tended to be a sell-the-news event for the chipmaker. Nvidia shares fell the day after each of the company’s last four quarterly reports, and Morgan Stanley analysts told clients recently that they “aren’t necessarily optimistic that trend reverses.” Investor attention could focus on Nvidia’s defense of its market share in the face of growing competition, along with worries about circular financing, Morgan Stanley wrote. Nvidia is projected to report a record $92.16 billion in second-quarter revenue, along with adjusted earnings of $2.09 per share, both roughly doubling year-over-year. $85.67 billion of that revenue is expected to come from Nvidia’s data center segment, up 108% from a year ago, per Visible Alpha estimates. Related Education How Nvidia Generates Revenue AMD versus Nvidia: Who Dominates GPUs? Analysts remain overwhelmingly bullish on Nvidia stock despite the recent volatility, with all but one of the 13 analysts tracked by Visible Alpha recommending buying the stock. Their mean target of $296 would suggest more than 35% upside from Thursday’s close. Do you have a news tip for Investopedia reporters? Please email us at [email protected] Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Nvidia. “ NVIDIA Sets Conference Call for Second-Quarter Financial Results .” Morgan Stanley. “Weekly: NVDA Earnings Preview: Strong growth even before Rubin product cycle impact.” Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK Read more News Company News Tech Sector News Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.