Investors are preparing for potential market volatility as chip giant Nvidia’s stock price has been fluctuating. The company, which recently became the third most valuable listed company in the U.S. before dropping back to fifth, is set to announce its latest quarterly earnings on Wednesday. This announcement will test the company’s shares, with billions in investor capital at stake.
After experiencing a significant increase in its stock price over the past year, investors are unsure if Nvidia’s growth is sustainable. Options traders have placed bets on both put and call options, indicating that the market capitalization could swing by $180 billion after the earnings announcement.
Analysts are expecting Nvidia’s fourth-quarter sales to have tripled year-on-year, driven by strong demand for its chips. However, concerns about the company’s outlook in light of trade tensions between Washington and Beijing are weighing on investors’ minds.
In addition to Nvidia’s earnings, investors are also keeping an eye on the minutes from the Federal Reserve’s recent meeting, which could provide insight into potential rate cuts. Other news includes President Biden’s campaign out-raising Donald Trump’s, potential legal challenges to Kroger’s takeover of Albertsons, and HSBC’s profits plunging after a charge in China. Harvard is also dealing with an antisemitism controversy, while Capital One’s acquisition of Discover Financial is facing strong opposition from regulators and critics. The fate of Nasdaq’s board diversity rule is also uncertain following a decision by the U.S. Court of Appeals to rehear a challenge to the initiative.
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