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The options market is forecasting a substantial increase in NVIDIA’s share price, ranging from $10.5 to $13.05 by the close of trading on Friday. Each $4 increase in NVIDIA’s stock corresponds roughly to one full day of Intel’s entire market cap, approximately $100 billion. Thus, the options market anticipates a move between 2.6 and 3.26 times Intel’s market cap.
The largest percentage change is expected during today’s after-hours trading session.
Wall Street analysts predict NVIDIA will exceed its revenue guidance of $45 billion for the just-ended quarter. JPMorgan estimates the October quarter revenue to fall within the range of $53 billion to $54 billion.
NVIDIA’s recent financial report, ending in April, included about $4.5 billion from H20 GPU sales. Given current uncertainties regarding the future of these GPUs in China, JPMorgan suggests excluding H20 sales for a more accurate quarterly revenue figure. If NVIDIA surpasses its own guidance for the July-ending quarter, it could see an additional revenue increase of between $6.5 billion and $7.5 billion.
NVIDIA holds approximately $1.9 billion worth of existing H20 inventory that can generate ancillary revenues of up to $6 billion if all units are sold through channels. JPMorgan estimates selling 100,000 H20 GPUs in China yields $1 billion in revenue, suggesting additional quarterly revenue between $3 billion and $4 billion over two to three quarters.
In summary, NVIDIA’s stock is poised for a significant upward movement, potentially reaching up to 2.6 times Intel’s market cap by Friday.
