AI chip giant Nvidia (NVDA), the second-most valuable company in the world, could move the entire stock market when it reports quarterly results after markets close on Wednesday.
Nvidia stock is expected to move about 7% in either direction by the end of the week, according to an analysis of options pricing data. That would put Nvidia’s share price at either $140.47, a 4-month high, or $122.11, its lowest level since before the U.S. and China agreed to lower sky-high tariffs on each other’s imports.
Nvidia shares have risen more than 20% in the past month, and as of Tuesday morning were on the cusp of positive territory for the year. Technical analysis suggests bullish momentum is on Nvidia’s side heading into Wednesday’s report.
It’s been a year since Nvidia shares have risen on a quarterly report. The stock popped more than 9% in May 2024 after the company blew past earnings expectations and announced the 10-for-1 stock split that paved the way for it to join the blue-chip Dow Jones Industrial Average.
Nvidia’s earnings have continued to top estimates since then, but they’ve failed to impress investors. Shares fell after each of Nvidia’s three most recent reports, including nearly 9% in February despite the results containing ample evidence that demand for its AI-enabling chips remained as strong as ever.
Analysts expect Nvidia to report revenue and earnings growth of about 66% and 40%, respectively, 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 represents about 25% upside from Friday’s close.