Nvidia’s post-earnings move seen at 5.6%…lowest in three years

JOON HYOUNG LEE

Summary

Options Research & Technology Services (ORATS) said Nvidia’s post-earnings move is expected to be around 5.6%, the lowest in three years.
Bloomberg estimates put Nvidia’s Q4 revenue at $65.8 billion and earnings per share at $1.53.
Wall Street said Nvidia’s results could increase volatility in AI-related stocks, and shift concerns over excessive AI investment and the “AI bubble” narrative.

*Jensen Huang, CEO of Nvidia. Photo=Shutterstock*

Nvidia’s share-price swing following its fourth-quarter earnings release last year is expected to be the smallest in the past three years, according to an analysis.

Reuters reported on the 25th (local time) that options analytics firm Options Research & Technology Services (ORATS) forecasts Nvidia shares will move about 5.6% after the Q4 earnings announcement. By that measure, it would be the lowest in three years. Reuters said “(5.6%) implies a move of roughly $260 billion in market capitalization terms,” adding that it “is well below the average move of 7.6% over the past 12 quarters.”

Nvidia is scheduled to report its Q4 results at 6 a.m. Korea time on the 26th. Bloomberg estimates put Q4 revenue at $65.8 billion and earnings per share at $1.53.

On Wall Street, investors are closely watching Nvidia’s results, as they can amplify volatility in artificial intelligence (AI)-related stocks. With concerns over excessive AI investment recently resurfacing, the focus is on whether Nvidia’s numbers can cool the “AI bubble” narrative.