Nvidia Earnings Report Could Trigger $300 Billion Market Swing

Market watchers are bracing for potentially historic volatility when Nvidia reports its earnings  on Wednesday (Nov. 20), according to Bloomberg News.

The chip giant’s stock could move about 8% in either direction following the results, potentially shifting its market value by nearly $300 billion — an amount exceeding the total worth of most S&P 500 companies, Bloomberg said. The news service reported that Bank of America analysts indicate the report carries more market risk than upcoming Federal Reserve decisions or inflation data.

The heightened uncertainty centers on Nvidia’s new Blackwell chip line. While the company projects billions in fourth-quarter revenue from the product, production delays have complicated supply forecasts.

Customers may delay purchases of current-generation Hopper chips while awaiting Blackwell’s release.

The stakes are exceptionally high, given Nvidia’s nearly 200% stock surge in 2024, which made it the world’s most valuable company. The chipmaker has exceeded revenue estimates by an average of $1.8 billion over the past five quarters.

Bloomberg reported that Nvidia’s Big Tech customers, including Microsoft, Alphabet, Amazon and Meta, indicated increased capital spending plans for the year ahead, pointing to continued demand for Nvidia’s artificial intelligence (AI) accelerator chips.

Nvidia, a global leader in GPU technology, is at the forefront of the AI economy. Founded in 1993, the company revolutionized computing with its GPUs, initially designed for gaming but now integral to AI workloads. Nvidia’s CUDA platform and tensor core GPUs, like the A100 and H100, dominate AI model training and inference, making it a cornerstone of data center infrastructure. Its software ecosystems, such as TensorRT and Nvidia AI Enterprise, bolster its offerings in the healthcare, automotive and robotics industries.