There will be no post-earnings pop for Nvidia this week
Despite Nvidia Corp (NASDAQ:NVDA) dishing out a fourth-quarter earnings and revenue beat, the chip behemoth was last seen trading 2.4% lower at $190. Investors are dismissing the company’s data center growth and revenue of $68.13 billion, instead zeroing in on the long-term impact AI infrastructure will have on hyperscaler spending and cash flow.
Despite the price action today, no fewer than 12 analysts have hiked their price targets on NVDA this morning, including at Melius Research to $380 — double the stock’s current trading price.
Nvidia stock has been choppy of late, with recent pullbacks captured by $170. Although shares have been unable to breach the $200 ceiling since November, the stock remains up 44% year-over-year.
Options traders are all in. So far 924,000 calls and 538,000 puts have crossed the tape, triple the average intraday rate. Most popular are the weekly 2/27 195- and 200-strike calls, with new positions being opened at the latter.
Plus, NVDA’s Schaeffer’s Volatility Scorecard (SVS) comes in at 24 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.