Back to top

Image: Bigstock

The Best Options Trading Strategy for NVIDIA (NVDA) Earnings

Read MoreHide Full Article

On Thursday, August 11th, NVIDIA Corporation (NVDA - Free Report) will release its second quarter earnings results. The company is currently a Zacks Rank #1 (Strong Buy) and shares of NVDA are up just over 77% year-to-date.

Join David Bartosiak at 1pm this Thursday on YouTube. Dave will look into NVIDIA Corp.’s past earnings, look at what is currently going on with the company, and gives us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will look into some potential options trades for investors looking to make a play on NVIDIA Corp. ahead of earnings.

NVIDIA Corporation in Focus

NVIDIA Corporation designs, develops, and markets a top-to-bottom family of award-winning 3D graphics processors, graphics processing units and related software that set the standard for performance, quality and features for every type of desktop personal computer user, from professional workstations to low-cost computers. NVIDIA Corp.’s 3D graphic processors are used in a variety of applications, including games, the Internet and industrial design.

NVIDIA Corp. is coming off of an earnings beat of 25.81% in its most recent quarter, as it posted an EPS figure that was $0.08 higher than the Zacks Consensus Estimate. The company has been on a roll in terms of beating on earnings estimates, as it has done so in each of the last 4 quarters. NVDA has posted an average earnings surprise of 57.89% in that time period.

NVIDIA CORP Price, Consensus and EPS Surprise

NVIDIA CORP Price, Consensus and EPS Surprise | NVIDIA CORP Quote

Heading into this earnings report, our Most Accurate Estimate for NVDA is $0.37, which is directly in-line with the Zacks Consensus Estimate. This translates into an earnings surprise prediction of 0%, but with its top Zacks Rank and strong history of beating earnings estimates, another surprise could be in the cards.  

NVIDIA Corporation’s innovative product pipeline and strength in gaming and high-end notebook GPU’s bode well for the company. The company’s focus on GRID platforms can drive GPU adoption in data centers, giving it an advantage over its competitors. NVIDIA’s GRID enterprise virtual graphics, which improve visual effects in games, could be a major catalyst for future revenue and margin growth. Also, it’s estimated that worldwide PC gaming is growing at a CAGR of 10%, which could also be a major tailwind for the company.

Subscribe to our channel to be notified of future live streams and make sure to check out our other videos for more stock information.

Dave Bartosiak is the editor of the Momentum Trader and Home Run Investor service. He has over a decade of experience in the financial services industry. He has traded forex, futures, stocks, and options. Mr. Bartosiak is a frequent guest on popular business news TV channels such as Bloomberg TV. He’s also the host of a light-hearted, Millennial-minded series of videos called “Trending Stocks.”

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.


See More Zacks Research for These Tickers


Pick one free report - opportunity may be withdrawn at any time


NVIDIA Corporation (NVDA) - free report >>