What Wall Street expects from Nvidia’s fourth-quarter earnings report
A big day for the $3 trillion chip designer.
Nvidia is on the move higher in the premarket trading — a welcome change for stock bulls after the $3 trillion chip designer had been limping into the release of its fourth-quarter earnings, due after the close on Wednesday.
The stakes of what this report means for the stock have gone up in recent sessions: the options-implied earnings move is now up to nearly plus or minus 10%.
Here’s what Wall Street’s expecting from the fourth-quarter results:
At a more macro level, traders will be looking for numbers and commentary good enough to serve as a circuit breaker and stanch the bloodletting in momentum stocks. Or not.
“It’s now been the biggest four-day decline for the S&P 500 since early September, and the Magnificent 7 was back in technical correction territory, having now shed more than -10% since their peak back in December,” Deutsche Bank macro strategist Jim Reid wrote. “That’s heightening the focus on Nvidia’s earnings after the US close tonight.”
