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Nvidia Earnings Loom as Markets Brace for AI Bellwether Test

Options markets flag a potentially large swing as investors question AI spending.

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Tuesday, Nov. 18, 2025. (AP Photo/Richard Drew)
A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 10, 2025.  REUTERS/Brendan McDermid/File Photo
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 10, 2025.  REUTERS/Brendan McDermid
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Nov. 19, 2025. (AP Photo/Ahn Young-joon)

Overview

  • Nvidia reports fiscal third‑quarter results after the close Wednesday, with Wall Street expecting about $54.8–$55.0 billion in revenue and roughly $1.25 in adjusted EPS.
  • Options pricing implies a move of around 7% in either direction following the print, which Reuters says would translate into the company’s largest one‑day market‑value change after earnings.
  • Global equities traded cautiously into the release and AI leaders have pulled back, with Nvidia down more than 10% this month after a run that briefly lifted its valuation above $5 trillion.
  • High‑profile investors have reduced exposure, with Peter Thiel’s fund and SoftBank exiting Nvidia positions and Michael Burry disclosing sizable bearish options against Nvidia and Palantir.
  • Debate over AI’s sustainability has intensified, as Alphabet’s Sundar Pichai warns of investment “irrationality” and analysts highlight a potential funding gap for massive capex plans.