Wall Street is expecting a volatile price swing in Nvidia’s (NVDA) stock after the chipmaker reports its latest financial results on Aug. 26.
Options traders have a $280 billion U.S. swing in Nvidia’s market value priced into the stock immediately after the company issues its second-quarter financial results.
That would be equivalent to a 5.4% one-day move in Nvidia’s share price, up or down, following the latest earnings report.
With a market capitalization of $5.05 trillion U.S., Nvidia is one of the biggest and most widely held publicly traded companies in the world and its share price movements impact the market.
That said, the volatility seen in Nvidia’s stock after the company reports its quarterly financial results is declining.
The 5.4% implied move in Nvidia’s stock following this latest earnings report is below the 6.5% the options market priced in ahead of Nvidia’s previous print in May of this year.
Over the past 12 quarters, Nvidia’s stock has moved an average of 7.4% immediately after the company’s financial results were made public.
However, the declining volatility doesn’t lessen the high expectations that Wall Street has for Nvidia and its pending financial results.
Consensus estimates are for Nvidia to post second-quarter revenue of $92 billion U.S., which would represent 97% year-over-year growth.
Analysts have Q2 earnings per share (EPS) of $2.09 U.S. penciled in for the chipmaker.
NVDA stock has risen 16% over the last 12 months to trade at $208.48 U.S. per share.
