Nvidia traders are eyeing an 8% swing in the stock after the chip giant reports earnings

• Nvidia investors are expecting volatile moves in the stock after company reports earnings.
• Traders are pricing in a $300 billion, or an 8% swing, according to options data compiled by Bloomberg.
• All eyes will be on the firm’s future guidance for Blackwell, its next-generation AI chip.

Nvidia investors are gearing up for volatile moves in Nvidia stock after the chip titan reports Q3 earnings, with markets pricing in an 8% stock swing after the results, according to data compiled by Bloomberg.

The swing would imply a $300 billion gain or loss in market value. The total market cap of the stock measured in at $3.5 trillion around 10:30 a.m. on Tuesday.

The chipmaker, which is scheduled to report earnings after the closing bell, was down 1.8% Tuesday morning, with traders eyeing little room for error as the world’s largest company by market cap trades around record highs.

Investors are expecting the firm to report $33 billion in revenue for the third quarter, which would mark an 83% increase from the same quarter last year.

In particular, all eyes will be on the firm’s guidance for Blackwell, with Wall Street looking for clues on how strong demand will be for its next-gen GPU.

In October, Huang described the demand for Blackwell as “insane.”

Nvidia could be on track to beat its earnings revenue by $2 billion, and the company could be on par to reach a $4 trillion valuation or higher in 2025, strategists from Wedbush Securities said in a note on Wednesday.

“Blackwell represents the next frontier for Nvidia and the overall AI Revolution and we believe the Street is still way underestimating the demand curve over the next 12 to 18 months and beyond. The cloud numbers and AI data points from Redmond, Amazon, Google were robust during earnings season the last month as this indicates massive enterprise AI demand is now underway,” the firm wrote.

“Starting in the fourth quarter, Nvidia’s new Blackwell GB200 GPU will dominate its sales for the next couple of years,” Louis Navellier, the chief investment officer of Navellier & Associates, added. “Since Nvidia spent approximately $2 billion developing the Blackwell GPU, it has no competitors and as it develops even more powerful GPU successors to Blackwell, I do not expect any competitor to ‘crack’ Nvidia’s monopoly on generative AI.”

Some forecasters, though, are concerned that Nvidia’s stock could drop even if the company beats earnings, due to investors’ sky-high expectations. That’s what happened after its last quarterly report, with Nvidia shares seeing a brief sell-off despite strong results overall.

“Once again, Nvidia’s stock is priced for perfection heading into earnings, as has been the case for almost all of the company’s earnings reports in recent memory,” Clark Bellin, the chief investment officer of Bellwether Wealth, said in a note on Wednesday. “For investors who do not own Nvidia, it may be best to wait for a pullback instead of establishing a position in this name when the stock is near record highs,” he later added.