NVDA earnings preview – AI mania put to the test

The most anticipated US earnings announcement is coming up with NVDA due to report fiscal Quarter ending Jan 2024 earnings after the Wednesday US market close. NVDA has seen a meteoric rise, quintupling in 2023 and up more than 40% so far in 2024, being the number one stock riding AI mania, making this earnings report one that all investors will be paying attention to.

Options markets are pricing in a +/- 11% move to this earnings report, which is exceptional considering the 1.8T size of the company, with Call/Put pricing showing a bias to the upside, which is not surprising with NVDA beating analyst estimates seven of the last eight earnings reports. There has also been a number of upward revisions in the last four weeks which can be taken as a bullish sign.

Source:Nasdaq.com

Saying that, NVDA did have the biggest fall of the year on Tuesday, dropping over 4% as some longs booked profits ahead of earnings, so a beat on these figures is certainly not unanimous. This selling action selling could also be an ominous sign of the reaction after earnings if results don’t meet the lofty expectations of Wall St. Either way traders will likely be rushing to enter or exit the stock depending on the result, so a big move in either direction is probable.

NVDA is scheduled to report earnings after Wednesdays US market close.