Traders in the U.S. equity options market are expecting Nvidia’s (NVDA.O), opens new tab upcoming earnings report to spark a more than $300 billion swing in the shares of the world’s most dominant artificial intelligence chipmaker.
Options pricing shows that traders anticipate a move of around 9.8% in the company’s shares on Thursday, a day after it reports earnings, data from analytics firm ORATS showed. That’s larger than the expected move ahead of any Nvidia report over the last three years and well above the stock’s average post-earnings move of 8.1% over that same period, according to ORATS.
Given Nvidia’s market capitalization of about $3.11 trillion, a 9.8% swing in the shares would translate to about $305 billion, likely the largest expected earnings move for any company in history, analysts said.
Such a move would dwarf the market capitalization of 95% of S&P 500 constituents, including Netflix (NFLX.O), opens new tab and Merck (MRK.N), opens new tab, according to LSEG data.
The results from Nvidia, whose chips are widely seen as the gold standard in artificial intelligence, also have big implications for the broader market. The stock is up some 150% year-to-date, accounting for around a quarter of the S&P 500’s 18% year-to-date gain.