Odaily Planet Daily report: NVIDIA (NVDA.O) will release its second-quarter fiscal year 2027 earnings after the U.S. market close on Wednesday. Wall Street generally expects the company to continue strong growth, but investors' focus has shifted beyond how much revenue can still increase—to whether AI capital expenditures can be sustained and whether NVIDIA can reduce its reliance on a small number of hyperscale customers.
The options market has already priced in significant volatility following the earnings report. Based on current option prices, traders expect NVIDIA’s stock to move approximately 6% in either direction by the end of this week. At Tuesday’s closing price, a 6% increase could push the stock to around $225, near the record high of $236 set in May; a 6% decline could push the price back below $202.
This year, NVIDIA's stock has risen 14%, but has declined more than 10% from its May high. More notably, NVIDIA's stock has dropped the day after each of its last four quarterly earnings reports. Morgan Stanley analysts recently stated they do not expect this trend to reverse. (CNBC)