Investors brace for “fireworks”The stock price of the chip giant Nvidia has marched steadily higher over the past year and a half, propelled by investors’ hopes that artificial intelligence is truly transformative technology — and by their hope that the company’s high-end semiconductors will continue to power that technology.
But in recent days, the company became the third most valuable listed company in the U.S., only to slump back to fifth.
Its shares will face another big test on Wednesday, when Nvidia announces its latest quarterly earnings, with billions in investor capital on the line.
After seeing the stock more than double since May on the back of huge demand for Nvidia’s chips, investors are wondering if it’s close to peaking.
Opinion on Wall Street appears divided: Bloomberg reports that options traders have piled into both put options, whose value rises as a stock’s price falls, and call options.
Persons:
’, Brace, ” Jim Reid
Organizations:
Nvidia, Bloomberg, Deutsche Bank
Locations:
U.S