Nvidia stock sleuths eye big boost on Wednesday

A day out from Nvidia’s (NASDAQ:NVDA) hotly anticipated quarterly earnings report sees stock market sleuths predicting the chipmaker’s market value can jump some $200 billion.

According to Trade Alert, a data analytics firm, options trading ahead of the results point to a potential 8.7% swing in Nvidia’s price come Wednesday.

Now, $200 billion of course sounds like a lot of money …  but, actually that’s less than Nvidia’s price moved after its recent quarters, as the price has moved on average 12% for the past eight quarters.

It is all being driven by the soaring demand for its data center products that enable AI computing, which Nvidia’s chips are uniquely suited to deliver.

Analysts at Barclays earlier this week, in a note, said: “All signs point to another revision higher.”

Barclays projects NVIDIA's data center segment revenue (which encompasses AI chip sales) to be around $23 billion in the first quarter, extending $24.5 billion in July, surpassing Street estimates of $21.1 billion and $22.8 billion, respectively.

The investment bank has an ‘overweight’ rating for Nvidia, with a $1,100 price target suggesting significant further upside from the current price of $950.