US Stock Market: Nvidia earnings to test AI boom as markets brace for sharp move

Options traders are bracing for a potential $280 billion swing in Nvidia’s market value after the chipmaker reports its second-quarter earnings on Wednesday, with investors looking for fresh signs of strength in artificial intelligence demand, Reuters reported.

Nvidia’s options are pricing in a 5.4% move in either direction for Thursday’s session. That implied move is smaller than the 6.5% move expected ahead of the company’s May earnings report and is also below Nvidia’s historical average post-earnings swing of 7.4% over the past 12 quarters, based on data from analytics firm Option Research & Technology Services.