Nvidia Earnings: Traders Anticipate Big Move Amid AI Boom

Nvidia is set to report its earnings on Wednesday, and traders are anticipating a big move in the stock. According to options pricing, shares could swing up to 6% in either direction by the end of the week following the results.

The chipmaker's data center segment is expected to drive significant revenue growth, with analysts projecting $85.92 billion in revenue, up 109% from a year ago. Nvidia's overall second-quarter revenue is estimated to reach a record $92.38 billion, roughly doubling year-over-year.

Despite the optimism surrounding Nvidia's earnings, analysts warn that quarterly reports have often been a sell-the-news event for the company. Morgan Stanley analysts told clients recently that they aren't necessarily optimistic that this trend will reverse.