Investors are closely watching NVIDIA Corp. NVDA as it prepares to release its second-quarter earnings report on Wednesday, which could result in a significant market value fluctuation.
What Happened: Nvidia stock might experience a $298 billion market value fluctuation following its second-quarter earnings report, according to a Monday note from Goldman Sachs, reported Business Insider.
Goldman Sachs’ trading desk indicated that options pricing data suggests a potential 9% move in Nvidia stock in either direction. This potential swing is based on the company’s $3.17 trillion market capitalization.
Scott Rubner, managing director at Goldman Sachs noted that “the bar for Nvidia this earnings season is a lot lower than it has been in recent quarters,” due to fundamental selling in the tech sector. Nvidia holds the record for the biggest one-day market value swing at $330 billion, which occurred in late July.
According to the bank, if Nvidia reports strong growth and forward guidance, it could surprise the stock market and lead to a significant move. “Can you imagine if NVDA beats expectations on Wednesday?” asked Rubner.
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Interactive Brokers strategist Steve Sosnick emphasized Nvidia’s integral role in the market, noting that more than 70% of the 25 most active trades on their platform have a connection to Nvidia. Sosnick stated, “We’ve gotten quite used to seeing NVDA atop the leaderboard most weeks, cementing its key role in investor psychology.”
Why It Matters: Nvidia’s upcoming earnings report is crucial for several reasons. Analysts expect the company to report second-quarter revenue of $28.68 billion, a significant increase from $13.5 billion in the same quarter last year. Nvidia has consistently beaten revenue estimates in seven of the last eight quarters, showcasing its strong performance.
Moreover, Nvidia is positioning itself as a central player in the AI ecosystem, akin to Amazon.com Inc. in e-commerce. Kevin Mahn, CIO of Hennion & Walsh, anticipates that Nvidia will surpass expectations, especially in its data center business, further solidifying its dominance in the AI sector.
However, some experts caution that Nvidia’s stock might face short-term setbacks. Gene Munster, managing partner at Deepwater Asset Management, points to potential supply-demand imbalances and delays in the Blackwell project, which could negatively impact investor sentiment despite the company’s long-term growth prospects.
Technical analyst Carter Braxton Worth remains bullish on Nvidia, advising investors to adopt a long-term strategy around the earnings period. He believes the company’s stock will continue its upward trajectory based on technical indicators.
Price Action: Nvidia's stock closed at $128.30 on Tuesday, up 1.46%. In after-hours trading, the stock slightly dipped by 0.46%. Year to date, NVDA has surged by an impressive 166.35%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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