NEW YORK - Traders are pricing in a big move for Nvidia’s shares after the chipmaker reports earnings on Wednesday, though expectations for volatility are more muted than in the past, U.S. options markets show.
Nvidia, up about 87% this year, is seen as a bellwether of the burgeoning AI industry and has a market value of about $2.3 trillion, making it the third-largest company on Wall Street, behind Microsoft and Apple. Wall Street is betting on a blowout quarterly report from Nvidia."AI benefits are broadening out to power, commodities and utilities," BofA strategists including Gonzalo Asis wrote in a note on Monday. "It's not just about NVDA anymore.
Matt Amberson, founder of options analytics service ORATS, noted that implied volatility for out of the money calls is roughly equal to that of out of the money puts. That suggests options traders are not writing off the possibility of more upside for the stock, despite its already-hefty year-to-date gains.Nvidia is expected to post earnings of $5.59 a share, and a rise in quarterly revenue to $24.65 billion from $7.19 billion a year ago, according to LSEG data.
Trump Media and Technology Group, the company affiliated with former U.S. president Donald Trump that operates Truth Social, reported $770,500 in revenue for the first quarter of 2024 and a net loss of $327.6 million. Shares in Sarasota, Fla.