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Options markets are pricing in a major Nvidia earnings swing after the chipmaker reports second-quarter results. Traders expect about a 6% move in the share price in either direction. That implied move translates to roughly a $260 billion shift in Nvidia’s market value on the earnings day.
The options implied move sits below the company’s long-term post-earnings average. Over the last 12 quarters, the implied move averaged about 7.7% while actual one-day moves closely tracked that figure. The current lower reading suggests traders now view Nvidia with more measured uncertainty, even as the stock remains highly valued.
Investors will watch revenue and guidance closely. Analysts expect strong growth but slower year-over-year gains compared with earlier quarters. Markets will also parse the effect of the recent revenue sharing agreement that assigns a 15% cut of certain China sales to the U S government. That deal and China’s demand are material factors for this quarter.
Wall Street strategists note that the ripple effects from any surprise will matter beyond Nvidia. A beat and raise outcome could lift speculative AI-linked stocks while weaker results could pressure them. Traders say the implied volatility on Nvidia may shape flows across the technology sector in the sessions that follow.
The company remains a focal point for the market given its size and role in the AI supply chain. Share movement after the report will test whether current valuations reflect sustainable demand and will drive near-term reallocations across indexes and peers. Investors will act on the numbers and on management commentary in the earnings call.
