Nvidia (NASDAQ: NVDA) shares have had an unusually good year, rising 32% versus an 8% gain in the semi-tracking SMH ETF. It's the second-best performing chip stock in the S&P 500 this year, behind AMD.
Ahead of the Nvidia quarterly earnings on Thursday afternoon, options traders are predicting some unusual behavior.
One expert opined that Nvidia is a stock that's had a magnificent run over the last two years, up over 300% versus the SMH's gain of about 64%. The stock is far outpacing the broader market, too; the S&P is only up 30% in the period.
Heading into earnings, the market is suggesting relatively little risk this quarter. The implied stock move is around 6% in either direction. To experts, this is an unusual sign.
Wall Street analysts are expecting average earnings of $1.66 per share. The stock closed modestly higher on Monday, at $256.12 per share. Those shares opened Tuesday morning higher by $3.68, or 1.4%, to $259.80
In conclusion, Nvidia is far outpacing the rest of the semiconductor space this year, and the options market is pricing in little risk for the stock ahead of earnings.
This week, NVIDIA announced its first Turing™ architecture-based GPUs, revolutionizing the work of 50 million designers and artists by enabling them to render photorealistic scenes in real time, add new AI-based capabilities to their workflows, and enjoy fluid interactivity with complex models and scenes.
