Nvidia Leads Option Contract Volume , and AI Stocks Lower
A day before posting earnings, $NVIDIA(NVDA.US$ fell 5% as the market opened. AI-related stocks that build computing hardware fell in concert, leading to a 3% drop in the overall semiconductor sector according to moomoo industry heat maps.
$Arm Holdings(ARM.US$ fell 7% after a startling 60%+ jump following the chip design company's earnings.
Investor favorite $Super Micro Computer(SMCI.US$ fell 10%, pulling back from a 100%+ gain since the start of the year.
$Advanced Micro Devices(AMD.US$ also fell 5%.
Among options contracts, Nvidia saw some of the most volume in the market before its earnings Wednesday. The massive growth of the stock year-over-year is expected to reach 700%, a metric that may have pushed options traders to price in a 60/40 ratio of calls to puts. Tuesday three-day-options contracts fell in price value as the stock price fell.
Analysts like Goldman Sachs predicted lofty price targets for the leading AI stock to a share price above $700 in the month leading up to earnings.
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Chak : And Goldman is dumping after pumping this report
Ryand83 : I reckon $SoundHound AI (SOUN.US)$ will be marked as a strong buy once more nvda news comes
Moshe David Chak: facts!
Chak Moshe David: From CNBC
“Shares of Nvidia, which is set to report earnings Wednesday after the bell, fell nearly 5%. Although Nvidia is expected to post impressive results, investors have expressed concerns about its sky-high valuation. Shares of Apple, Microsoft and Meta each lost about 0.8%.”
Who are these investors, institutional like Goldman?