Nvidia is scheduled to report results for the second quarter of fiscal 2027 after the U.S. market closes on Wednesday. Wall Street broadly expects the company to keep posting strong growth, but investor focus has shifted beyond the top line. The key questions now are whether spending on artificial intelligence infrastructure can hold up and whether Nvidia can reduce its reliance on a small group of hyperscale customers.
Options traders are already positioning for a notable post-earnings reaction. Based on current options pricing, the market is implying that Nvidia shares could move about 6% in either direction by the end of this week. Using Tuesday’s closing price as a reference, a 6% gain would put the stock near $225, close to the record above $236 set in May, while a 6% decline would send it back below $202.
CNBC also noted that Nvidia’s stock has fallen the day after each of its last four quarterly earnings reports. Morgan Stanley analysts recently said they were not optimistic that this pattern would reverse.
Nvidia (NVDA.O) is set to report results for the second quarter of fiscal 2027 after the U.S. market closes on Wednesday. Wall Street largely expects the company to maintain strong growth, but investors are no longer focused only on how much revenue can keep rising. Attention has also turned to whether AI capital spending can remain durable and whether Nvidia can lessen its dependence on a small number of hyperscale customers.
Options market signals a sizable post-earnings move
Current options pricing suggests traders expect Nvidia shares to move about 6% in either direction by the end of this week. Based on Tuesday’s closing price, a 6% rise would take the stock to around $225, near the record above $236 reached in May. A 6% drop, on the other hand, would push the shares back below $202.
Stock is still up this year, but off its May high
Nvidia shares are still up 14% this year, though they have fallen more than 10% from the May peak. CNBC said the stock declined on the day after each of Nvidia’s last four quarterly earnings releases. Morgan Stanley analysts recently said they were not optimistic that this trend would reverse.
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