Nvidia NVDA: How it can Make Over $200B After Earnings

Options traders suggest that Nvidia (NVDA) could see a $260 billion swing in market value following its Wednesday Q2 earnings report. Nvidia options implied a roughly 6% swing for the shares in either direction following the results, which will be reported after markets close on Wednesday, according to options market data. The tech giant will publish its Q2 earnings results on Wednesday after the markets close.

Nvidia beat analysts’ expectations by 1.8% last quarter, reporting revenues of $44.06 billion. The revenues were up a staggering 69.2% year-on-year, indicating that the company is on the right track. Analysts now predict significant improvement for the Q2 revenue call, raising the prospects of Nvidia stock. However, one analyst also suggests that its market cap could experience a huge swing upwards.

“The ripples out of Nvidia might be more interesting than the actual move for Nvidia,” said Chris Murphy, co-head of derivatives strategy at Susquehanna, a market maker. “A lot of these really high-flyer, speculative AI names have come off a lot, but Nvidia is basically back right below its all-time high.” Should the chipmaker’s results exceed expectations, Murphy said that would “support some of the harder hit, more speculative areas of the AI trade.”

NVIDIA launched its Blackwell-powered Jetson Thor developer kit and production modules, which fueled its stock even further. At press time, NVDA shares are trading at 181.60, up 3% in the last five days. This quarter, analysts expect a revenue growth of 54.6% year-on-year, reaching $46.45 billion, a surge of $2.39 billion from Q1. Furthermore, leading stock market price prediction firm Traders Union has given a buy call for NVDA, recommending investors to take an entry position at $179. Accumulating the stock below the $200 mark could be beneficial as it’s available at a discount due to market conditions.

The latest and revised price prediction for Nvidia (NVDA) stock stands at a maximum price of $200, $210, and $230. Buying NVDA at $179 before the Q2 earnings call would be the best choice for an entry position. If NVDA reaches $200, $210, and $230, it would surge 12%, 17%, and 28%, respectively.