Traders are positioning for a $355 billion swing in Nvidia's (NASDAQ:NVDA) market value following the chipmaker's first-quarter earnings report on Wednesday, according to options data.
Options positions indicate the market expects Nvidia's stock to move roughly 6.5% in either direction on Thursday, the day after results are released. This projected swing would exceed the individual market value of approximately 90% of S&P 500 companies.
The implied move is larger than the 5.6% swing priced in before Nvidia's February earnings. However, it remains below the company's historical average price movement of 7.6% around earnings, according to analytics firm Option Research & Technology Services.
The options activity suggests traders are maintaining a bullish stance on the AI chip company while seeking to protect recent gains. The implied volatility falls short of historical patterns despite ongoing concerns about the sustainability of large-scale AI capital spending across the industry.
Nvidia's Wednesday earnings release will provide insight into demand for its AI chips and the company's financial performance during the first quarter.
