Nvidia Set to Release Quarterly Earnings
Nvidia, a leading player in artificial intelligence, is about to share its quarterly results following the market close on Wednesday. Traders are gearing up for significant movements in the stock.
Options data suggests that Nvidia’s stock could swing by approximately 6.4% in either direction by this weekend. A notable scenario could see the market capitalization reach $4.67 trillion, translating to a stock price of $168.41. This follows the recent highs at $191.25, although that price has seen a dip since mid-July.
I mean, it’s worth noting that Nvidia has reported ten revenue figures since ChatGPT was launched in late 2022, which kind of prompted the AI boom and, well, positioned it as the world’s most valuable company. Stocks had notable gains in May 2024 after four of these reports were released.
That said, Nvidia has lately been having a tough time meeting the lofty expectations set by Wall Street. Over the last four quarters, shares have fluctuated around 3.2% from their earnings reports to the weekends. Interestingly, only the latest report from May seems to have concluded positively before the revenue announcement.
Investors will be paying close attention to Nvidia’s upcoming report to assess whether the appetite for AI technology remains robust. Major companies like Microsoft, Alphabet, and Amazon are planning to spend considerable amounts on data center improvements and other necessary infrastructure due to strong demand for AI and cloud services. Given that Nvidia holds around 80% to 90% of the AI chip market, it stands to gain significantly from this increase in spending.
Wall Street is also eagerly awaiting updates on sales directed at China. Nvidia previously indicated that tightening export restrictions could lead to losses amounting to $8 billion in the second quarter. Recently, Nvidia and rival Advanced Micro Devices (AMD) reached a deal with the Trump administration that would allow resumption of sales to China, albeit at a 15% reduction. However, this agreement may not impact the results on Wednesday and will likely influence Nvidia’s future guidance.
On a positive note, analysts have generally maintained a favorable outlook for Nvidia. Among the 14 analysts monitored by Visible Alpha, 13 have rated the stock as a “buy,” while only one has a neutral “hold” rating. The average price target sits around $203.38, which is about 13% higher than Nvidia’s closing price on Monday.
Updated – August 25, 2025: This story has been refreshed with the latest options and stock prices.
