NVDA Q4 2023 earnings analysis – As NVIDIA Corporation (NVDA) prepares to unveil its fourth-quarter results on February 21, 2024, the market is abuzz with anticipation and speculation. Currently trading at $694.52, reflecting a recent 4.35% decline, NVDA’s upcoming earnings announcement holds considerable weight. This blog post will delve into the present scenario, market responses, and what the future may hold for this tech behemoth.
Current Trading Snapshot: NVIDIA Corporation (NVDA)
– **Current Price:** $694.52
– **After-hours:** $681.03 (-1.94%)
– **Volume:** 69,432,802
– **Market Cap:** $1.715T
– **52 Week Range:** $204.21 – $746.11
– **Earnings Date:** Feb 21, 2024
Insights from the Market: Pre-Earnings Movement
The market climate sets the stage for NVIDIA’s earnings announcement. As of late Tuesday, U.S. stock index futures experienced a slight dip as investors awaited cues on monetary policy from the Federal Reserve’s late-January meeting. Tech stocks, particularly NVIDIA, extended losses in anticipation of its upcoming fourth-quarter earnings report.
A Bloomberg report adds an extra layer of intrigue, revealing that NVIDIA Corp. investors might have nearly $200 billion in market value riding on this week’s earnings report. Options positioning suggests a potential 10.6% move in the chipmaker’s shares on Thursday, the session following the earnings report. This could result in a market capitalization swing of around $180 billion, a significant figure even for NVIDIA’s stature.
NVDA Q4 2023 earnings analysis – Market Sentiments and Options Positioning
Traders and investors brace for increased volatility, especially considering NVIDIA’s stellar performance over the past year, where its stock tripled. The rise was fueled by the AI frenzy, making NVIDIA the S&P 500’s top-performing stock year-to-date. Big moves and rapid gains have raised concerns about valuations, prompting some to seek limited-risk alternatives.
Options market dynamics reveal a notable interest in upside calls, signaling a willingness among investors to participate in potential further rallies. Some of the options with significant open interest are calls ranging from $1,010 to $1,380, expiring at the end of the week. Reaching such levels would necessitate a surge of over 39% from the last closing price.
NVDA Q4 2023 earnings analysis -Analyst Insights and Expectations
Analysts and market participants have been closely monitoring NVIDIA’s trajectory, with varying sentiments. The options market gives NVIDIA a one in four chance of moving outside the $620 to $850 range, indicating a 15% dip or a 17% advance.
Christopher Jacobson of Susquehanna International Group notes, “Big moves have left some concerned with valuations and fearful of adding to or establishing positions here, but at the same time, they are fearful of missing out in the event of another leg higher.”
NVDA Q4 2023 earnings analysis NVIDIA’s Q4 Earnings Spectacle
As NVIDIA prepares to unveil its fourth-quarter results, the market is poised for potential fireworks. The options market reflects cautious optimism, with a notable interest in upside calls. Analysts and investors are keenly watching for signals of sustained growth, weighing the potential for further gains against concerns about valuations.
The post-earnings landscape will likely be marked by reactions across the tech sector, considering NVIDIA’s influence on major benchmarks. As the tech giant takes center stage on February 21, 2024, the market awaits the unveiling of its financial performance and the ensuing impact on its market dynamics.
Source – Yahoo Finance
