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 Countdown to NVDA

Posted May 22, 2024

Matt Insley

By Matt Insley

Countdown to NVDA

“There is a lot riding on the AI trade,” says Steve Sosnick of Interactive Brokers. 

That’s putting it mildly… 

In case you’ve been living under a rock, Nvidia (NVDA) — the world’s largest chipmaker and most valuable company — reports earnings today. 

This after the giant chipmaker’s shares have skyrocketed 87% so far this year; in fact, NVDA closed at a record high Monday.

“Traders are pricing in a big move for Nvidia’s shares after the chipmaker reports earnings on Wednesday, though expectations for volatility are more muted than in the past, U.S. options markets show,” Reuters reports. 

“Nvidia's options are primed for an 8.7% swing in either direction by Friday, according to data from options analytics firm Trade Alert.” That’s a decent — but not mind-blowing — swing, right? 

But get this: “That would translate to a market cap swing of $200 billion,” says Reuters, “larger than the market capitalization for about 90% of S&P 500 companies.” 

Send your opinions to, feedback@newsyoucanacton.com

Your Rundown for Wednesday, May 22, 2024...

AI is “Broadening,” But… 

“Wall Street is betting on a blowout quarterly report from Nvidia,” Reuters adds. 

“A downturn in Nvidia could test investors’ resolve regarding the broader AI trade.” 

On the other hand, in memo Monday, Bank of America strategists say: 

“It’s not just about NVDA anymore… AI benefits are broadening out.” 

And a recent survey of more than 4,700 CEOs in 105 countries verifies that point… 

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About the “broadening” of the AI industry… 

“BofA’s strategists expect [Nvidia] to drive 9% of the S&P 500 earnings growth over the next 12 months,” says Reuters, “compared to 37% over the last 12 months.” 

Regardless, Mr. Sosnick says to proceed with caution: “Yes, the rally has broadened out… 

“But I'm not sure how sturdy it would be if Nvidia sold off hard.” 

We’ll find out This afternoon. Until then, expect the financial media to obsess… 

Market Rundown for Wednesday, May 22, 2024

The S&P 500 is down 0.05% to 5,315. 

Oil is down 1.30% to $77.63 for a barrel of WTI. 

Gold is down 0.60% to $2,411.50 per ounce. 

And Bitcoin is right below $70K. 

Send your comments and questions to, feedback@newsyoucanacton.com

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