Nvidia's Earnings Release Anticipated

Nvidia Corp, a prominent chipmaker, is preparing to release its earnings report this week. The company's shares have experienced significant movement in anticipation of this event. Options traders are predicting an approximately 11% move in Nvidia shares following the report. Trading activity in Nvidia options has escalated ahead of the financial results, with around $500 billion worth of Nvidia options traded last week.

In the lead-up to the fourth-quarter earnings report, Nvidia's shares fell 4.8% to $691.30. Despite this, the stock has more than doubled over the past year. 51 of 55 brokerages rate the stock 'buy' or higher, with a median price target of $740. Raymond James has increased Nvidia's price target to $850 from $700, maintaining a strong buy rating. Similarly, Baird has raised the price target to $1,050 from $750, maintaining an outperform rating.

The company's stock price has risen by almost 47% this year, following an impressive 234% increase in 2023. However, technical indicators for Nvidia's stock are suggesting potential signs of a correction, with the price falling below the 10-DMA and parabolic stop & reverse (PSAR). The relative strength index (RSI) has also diverged, indicating short-term downward momentum.

Nvidia currently holds a Momentum Style Score of A, suggesting a promising momentum pick. The stock has demonstrated positive short-term price activity, with shares up 0.67% over the past week.

From November 2021 to October 2022, Nvidia encountered significant challenges, leading to a 68% decline. However, the company's shares rebounded due to increased demand for artificial intelligence and gaming, resulting in a 529% increase in the stock price.

Despite the recent fluctuations, Nvidia's market cap stands at an impressive $1.8 trillion, establishing itself as a significant player in the global market. The company's expected Q4 earnings are generating anticipation among investors and the market at large.