Nvidia Earnings Disappointment Could Trigger Up To 10% Crash In Stock Market, Warns Macro Strategist: 'I'm Wondering Who's Turning Around To Buy'
Portfolio Pulse from Benzinga Neuro
Macro strategist Peter Tchir warns that Nvidia's upcoming earnings report could trigger a 5-10% stock market crash if it disappoints. The market has high expectations, with options traders anticipating an 11% upside. Despite a 529% increase in Nvidia's stock price due to demand in AI and gaming, there's concern that even with good earnings, there may not be buyers, leading to a potential pullback.
February 21, 2024 | 4:43 am
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Nvidia's upcoming earnings report is highly anticipated, with the potential to significantly impact the stock market. High expectations are set, but concerns about the availability of buyers post-earnings could lead to a pullback.
Given the high expectations set by options traders and analysts for Nvidia's earnings, coupled with the strategist's warning of a potential 5-10% market crash if these expectations are not met, the short-term impact on NVDA's stock price is likely negative. The market's anticipation of an 11% upside post-earnings sets a high bar that, if not exceeded or met, could lead to disappointment and a subsequent sell-off. The historical context of Nvidia's stock performance and the significant increase in its price due to demand in AI and gaming further amplify the potential for volatility post-earnings.
CONFIDENCE 85
IMPORTANCE 95
RELEVANCE 100