Nvidia Earnings: Goldman Predicts Potential $298 Billion Market Value Shift

Nvidia's upcoming earnings report could trigger a $298 billion market value swing, according to Goldman Sachs. Options pricing data suggests a potential 9% stock price movement, highlighting the high stakes for the tech giant and broader market.

Staff Editor August 27, 2024 2 min read

Nvidia Earnings Report Could Trigger $298 Billion Market Value Swing

As Nvidia CEO Jensen Huang takes the stage at the annual Nvidia GTC Artificial Intelligence Conference, showcasing the company’s latest products, investors are bracing for a potentially seismic shift in the tech giant’s market value. According to Goldman Sachs, Nvidia’s upcoming second-quarter earnings report could trigger a staggering $298 billion swing in market capitalization.

Options pricing data analyzed by Goldman Sachs suggests a possible 9% move in Nvidia’s stock price in either direction following the earnings announcement. This potential fluctuation underscores the high stakes surrounding the report, with Nvidia already holding the record for the largest one-day market value swing at $330 billion.

“The bar for Nvidia this earnings season is a lot lower than it has been in recent quarters,” Goldman Sachs noted in their analysis. The investment bank believes that a solid quarter of growth coupled with strong forward guidance could catch the stock market by surprise, particularly given the recent net selling in the information technology sector.

As the second-largest company in the S&P 500, with a weight of approximately 6.5%, Nvidia’s performance has far-reaching implications for the broader market. The tech giant’s influence extends beyond its own stock, affecting other major companies and investment vehicles.

Steve Sosnick, chief strategist at Interactive Brokers, highlighted Nvidia’s integral role in the market. An analysis of the 25 most active trades revealed that over 70% have a connection to Nvidia, including other tech giants like Tesla and AMD, as well as semiconductor ETFs.

“Nvidia’s consistent presence atop the leaderboard underscores its importance in investor psychology,” Sosnick remarked, emphasizing the company’s outsized impact on market sentiment and trading activity.

As investors await Nvidia’s earnings report, the tech sector and broader market remain on edge, anticipating the potential ripple effects of this crucial announcement. With lower expectations set for this earnings season, Nvidia’s results could prove to be a pivotal moment for both the company and the market at large.