NVIDIA and nothing for a long, long time. Estimated post-results volatility could impact the broader stock market

This is after the US session today. The results will be published by the hottest company in the world, NVIDIA. The share price of the Santa Clara, California-based company has increased by 40% this year alone, and in the last 12 months the share price increase was 224%. This, in turn, increased NVIDIA's capitalization to USD 1,715 trillion, which allows it to compete in size with AMAZON or Alphabet.

The company's P/E for the last 12 months is 91,5x, while the forward P/E is 33,7x. Of course, in the following quarters the market does not expect such dynamic development as in those that are already behind us, so the multipliers will flatten over time, and investors will count on maintaining and gradually expanding the already established business.

The average price target on Wall Street for NVIDIA stock is $750. The spread in forecasts is wide, however, as the highest forecast is for $1200 and the lowest is for $410.

Forecasts for NVIDIA's results and the stock crash

The Wall Street analyst consensus estimates earnings per share at $4,58 on revenue of $20,37 billion. The company got investors used to the fact that in recent quarters it beat the consensus every time, which had an additional positive impact on the share price. Will it be like that this time? The results will be published after today's session in the US, so the first reactions will be visible in post-session trading and in the quotations of futures contracts on Nasdaq xnumx or S&P 500. Yesterday, the company's quotations plummeted. NVIDIA's share price fell 4,35%, the largest daily decline since October 17, 2023.

According to investors on the options market, the range of volatility after the company's results is estimated at approximately 10%. We're talking about movement in one direction or the other. If an actual move of 10% or more were realized, it would be the largest change in the company's share price since May 2023. NVIDIA's weight in the Nasdaq 100 is over 5%, and in the S&P 500 the weight is 4,24%. As a result, a change in the share price may affect the behavior of entire indices.