Nvidia investors are preparing for significant stock price fluctuations following the company’s upcoming third-quarter earnings report, with options data indicating an expected 8% swing in the stock, equating to a potential $300 billion move in market value, according to Bloomberg.
The chipmaker, which is currently valued at approximately $3.5 trillion, has seen its stock rise to record highs, leaving little room for error as investors await the results. Nvidia is expected to report $33 billion in revenue for the quarter, marking an impressive 83% year-over-year growth.
Attention is particularly focused on the company’s guidance for Blackwell, its next-generation GPU. Wall Street is eager for indications of strong demand for the chip, which Nvidia CEO Jensen Huang described as having “insane” demand back in October.
Wedbush Securities strategists believe Nvidia could surpass its earnings expectations by $2 billion, projecting a potential $4 trillion valuation by 2025. “Blackwell represents the next frontier for Nvidia and the AI revolution,” Wedbush analysts noted, pointing to strong enterprise AI demand from major tech firms like Microsoft, Amazon, and Google. They believe Nvidia’s new Blackwell GPU will dominate sales into the next couple of years.
Louis Navellier, Chief Investment Officer at Navellier & Associates, echoed this view, emphasizing that Nvidia’s $2 billion investment in Blackwell development has given it a competitive edge, with no clear challengers in sight for its leadership in generative AI.
However, some market watchers warn that even a strong earnings report could lead to a stock sell-off, as Nvidia’s performance is already priced to perfection. This was seen in the aftermath of the company’s last quarterly report, where a brief sell-off occurred despite solid results.
Clark Bellin, CIO of Bellwether Wealth, cautioned investors that with Nvidia’s stock near record highs, waiting for a potential pullback might be a safer strategy for those looking to establish a position. “For investors who do not own Nvidia, it may be best to wait for a pullback,” Bellin advised.
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