Nvidia shares could see $300B swing following Q2 earnings report: UBS

Nvidia stock (NASDAQ: NVDAApple Inc.’s stock could swing around 10% after the chipmaker reports second-quarter results, UBS said Wednesday, as investors prepare to see if the company can beat expectations for second-quarter earnings and revenue.

Current Options Prices showed that traders were expecting a move after the report of about 10%, or a swing of $300 billion with (NVDA program) The market cap is $3.1 trillion, Solita Marsili, UBS’s chief investment officer for the Americas, said in a note. The second-quarter report is due after Wednesday’s closing bell. It’s seen as a bellwether for investment in artificial intelligence and the broader market.sb 500)(Compound: Indian), Nvidia (NVDA programIt is also expected to provide better-than-expected guidance for other financial results, it said.

Goldman Sachs separately noted that Nvidia (NVDA) options are implying a +/- 10% move after the second-quarter report, which is higher than the four-quarter average of 7%. Analysts expect Nvidia (NVDA) to report second-quarter adjusted earnings per share and revenue that more than doubled over the past year, to $0.64 on $28.67 billion.

NVDA’s report comes after the stock jumped about 28% following a selloff in August that swept the broader market. “We’ve argued that future gains in global technology stocks should be more gradual after a rapid recovery over the past three weeks, with headwinds from U.S. macro data and further news on semiconductor export controls likely to add to volatility,” Marsili said.

“However, we continue to take a positive structural view on the broader topic of AI,” she added.

Investment in AI is set to continue to grow, UBS said, with big tech companies on track to increase their capital spending this year by 43% year-over-year. “However, the capex intensity — capital spending divided by sales — of big tech companies remains below its historical peak,” Marsili said.

UBS analysis shows that capital spending by big tech companies could grow by as much as 25% in 2025, which “bodes well for AI capabilities in semiconductors,” it says.

ETFs that hold NVIDIA stock include (NVDA) (QQQ), (VOO), (XLK), (SOXX), and (SMH).