Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation while establishing new bilateral boards for economic and AI oversight. (Photo by Alex Wong/Getty Images)

Alex Wong | Getty Images News | Getty Images

Earnings for chip giant Nvidia are always a big deal for the stock market but are stacking up to be monumental this time, with headlines resurfacing hopes that a U.S.-China trade deal may open the gates for the company to start selling its chips to Chinese companies.

The biggest stock in the world added another 20% since May 5, including a 4.4% rally Thursday after reports that the U.S. cleared a handful of Chinese firms to buy Nvidia’s H200 processors used for AI applications. Nvidia’s market cap is now just shy of $5.7 trillion, up from $4.7 trillion as of market close last Tuesday.

Stock Chart IconStock chart icon

Nvidia since May 5

The sharp surge in the stock price means many bullish options traders who were buying calls ahead of this quarter’s earnings report are already “in the money,” meaning the stock is trading above their strike price. That’s increased leverage in the options market into options expiry Friday, as well as next week, with $40 billion of options delta trading against just $4 billion of total premium.

Big Nvidia expiration

Nvidia reports next Wednesday, May 20, after the bell.

The top ten most popular Nvidia options by volume all expire today, with the 235-strike call accounting for $114 million in options premium and almost $5 billion in delta. Those traders will need the stock to at least hold onto this week’s gains through the bell Friday or face a swift drop in value.

“How do you reprice China reopening to Nvidia, I think that’s what people are repositioning for right now,” said Brent Kochuba, founder at SpotGamma. “You have these calls that are gaining a lot of value.”

Looking at earnings next week, traders are expecting a big move. The implied volatility for Nvidia earnings is just shy of 7.5%, which is more than double the median move after the past four quarters.

The most popular options contract by volume expiring next Friday, the May 22 250-strike call that sells for about $4, needs almost exactly that – at a minimum.

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Source link

Visited 7 times, 1 visit(s) today

Related Article

Warren Buffett’s Successor, Greg Abel, Just Went Shopping in the Tech Sector Again!

This has been a year of historic change for the trillion-dollar conglomerate that Warren Buffett built. Following the Oracle of Omaha’s retirement as Berkshire Hathaway‘s (NYSE:BRKA)(NYSE:BRKB) CEO on Dec. 31, the oversight of the company’s day-to-day operations and its $363 billion portfolio passed to Greg Abel. It took Buffett’s understudy just one quarter to really

Why Wall Street Is Turning to Quality Stocks As AI Trade Jitters Grow

Wall Street always seems to have a new favorite word or phrase. When the AI trade launched in earnest, it was the “Magnificent Seven.” Then came “AI enablers,” “picks and shovels,” and, more recently, “momentum.” Now, as investors fret over rising interest rates, expensive AI ambitions, and a top-heavy market, the word du jour is

Not Lilly. Not Johnson & Johnson. This Stock Will Be the Biggest Healthcare Winner of 2026

Healthcare stocks have rebounded this year. Many leaders in the sector have helped drive that performance. Eli Lilly (LLY -1.01%), the largest healthcare stock by market cap, has gained 16%, while Johnson & Johnson (JNJ -0.61%), another major healthcare player, has climbed 22%. However, among large-cap healthcare stocks, none has performed better than Moderna (MRNA

MEXC’s New-Token Trading Volume Rises 77% in September as

MUTSAMUDU, Comoros, Oct. 21, 2026 (GLOBE NEWSWIRE) — MEXC, a pioneer in 0-fee digital asset trading, has released its September trading data. New-token and TradFi spot trading volumes rose 77% and 78% month over month, respectively, while tokenized U.S. stock trading volume increased 81%. Stock Meme projects also took the top two spots by new-token spot

Stock Market Today: S&P 500, Nasdaq 100, Dow Jones Futures Gains as Iran Prolongs US Talks Ahead of Midterms— NFLX, SPCX, SMCI in Focus (UPDATED)

Editor’s Note: The ETFs tracking benchmark indices and the headline were updated in the story. U.S. stock futures were higher on Wednesday, as the Dow Jones, S&P 500 and Nasdaq 100 indices rose, following Tuesday’s mixed close. Reuters reported that Iran is prolonging negotiations with the U.S. to undermine President Donald Trump ahead of the

Why Is Rocket Lab Stock Rising in Pre-Market Trading?

Rocket launching ©Rawpixel Rocket Lab Corporation (NASDAQ:RKLB) shares advanced 3.9% to $52.87 in pre-market trading on Wednesday as investors assessed the company’s upcoming earnings announcement, progress on a NASA spacecraft mission and developments surrounding its proposed acquisition of Iridium Communications. The increase followed a period of declining share prices after Rocket Lab delayed the launch

What Does Seabridge Gold (TSX:SEA) Acquiring Slaughterhouse Mean For Investors?

Seabridge Gold (TSX:SEA) has agreed to acquire a 100% interest in the Slaughterhouse copper and gold project in southern Wyoming from Orogen Royalties. The purchase agreement covers both the Slaughterhouse property and associated technical data, along with future milestone-based payments and royalty terms. The Slaughterhouse Project is located in a historically productive copper and gold

Why Is EchoStar Stock Rising in Pre-Market Trading?

Satellite dishes on telecoms tower ©Shutterstock EchoStar Corporation (NASDAQ:SATS) shares advanced approximately 4.8% in pre-market trading on Wednesday, extending recent gains following a rating upgrade from JPMorgan and continued investor interest in the company’s spectrum transactions and investment in SpaceX. The increase followed JPMorgan’s decision on 16 October to upgrade EchoStar from Underweight to Overweight,

If Alphabet Does This on Oct. 28, the Stock Could Skyrocket

Like many big tech companies, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has had a lackluster year. It’s only up about 7% for the year, but that figure was over 25% at the start of May. Alphabet has slowly sold off and is now losing to the S&P 500 (SNPINDEX: ^GSPC). However, I think that could be

If I Could Only Invest $500 in AI This Month, I’d Buy This 1 Stock.

If I could only invest $500 in one artificial intelligence stock this month, I’d pick Netlist (NLST +4.67%). Major developments in several court cases have fortified the company’s balance sheet and point toward soaring net profit margins in the years ahead. It’s a mid-cap valued at just $2.1 billion, and it’s still trading well below

Amazon or Alphabet: If I Could Only Own One for the Next Decade, It Would Be This One

Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two companies that hardly need an introduction. Both are leaders in their respective industries, generally post excellent financial results, and have crushed broader equities over the long run. Investors arguably can’t go wrong with either of these, and I personally own shares of both. But

$4,000 in These 4 Non-Nvidia Chip Stocks Could Be Worth This Much by 2030

Nvidia (NASDAQ: NVDA) is now the largest company on the planet; its market cap represents around 7.5% of the value of the S&P 500. As such, if you own any mutual funds or exchange-traded funds (ETFs) — particularly index funds — you probably already have a lot of exposure to the giant chipmaker. However, if

Here’s What $10,000 Invested in SpaceX and Tesla Could Be Worth in 2030

If you want to invest in the future, splitting your investment between Elon Musk’s two companies, Space Exploration Technologies (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA), could be a solid bet. With just under $10,000 split between the two stocks, investors could buy 14 shares of Tesla and 34 shares of SpaceX. Tesla is the older

3 Reasons to Sell JACK and 1 Stock to Buy Instead

3 Reasons to Sell JACK and 1 Stock to Buy Instead Since April 2026, Jack in the Box has been in a holding pattern, posting a small loss of 4.4% while floating around $12.15. The stock also fell short of the S&P 500’s 8.9% gain during that period. Is there a buying opportunity in Jack

Sports Team Value Gains Lag Stock Market Since 2022

The cost of buying a sports team has soared in recent years, including record price tags in 2026 for the Los Angeles Lakers ($12.5 billion), Seattle Seahawks ($9.34 billion) and Los Angeles Angels ($4 billion). It has spurred talk of a sports valuation bubble. Yes, sports team values are up huge, but they trail stock

Anthropic to publicly file for IPO as early as Friday, sources say

Anthropic (ANTH.PVT) is set to publicly file its S-1 investor prospectus as soon as Friday, according to three people familiar with the artificial intelligence firm’s plans. The move would mark a crucial next step for what could be the biggest IPO in history. The much-anticipated public debut, expected to surpass SpaceX’s (SPCX) June IPO, is

Prediction: $150 a Month Invested in Micron Stock Will Be Worth This Much by Year-End 2030

Over the last year, memory chip manufacturers have benefited from extraordinary demand for artificial intelligence (AI). In particular, Micron Technology (NASDAQ: MU) has witnessed its market capitalization propel from just $53 billion at the start of the AI revolution to more than $1 trillion today. MU Market Cap data by YCharts Missed Nvidia in 2009?

Micron Tripled in 2026. Can It Repeat in 2027?

Micron (NASDAQ: MU) stock has more than tripled so far in 2026, making it the fourth-best-performing stock in the S&P 500 (SNPINDEX: ^GSPC) this year. That’s an impressive run, but for investors, the past really doesn’t matter; only the future. So, could Micron repeat this feat in 2027? One metric suggests that the answer to

GM Just Beat Earnings Estimates. Is Ford Still the Better Dividend Stock?

Quick Read Ford (F) yields nearly 5% versus GM’s (GM) sub-1%, making Ford the clear winner for investors who need cash income today. GM’s dividend is covered 18 times by free cash flow versus Ford’s 2.6 times, making GM’s payout far safer for long-term holders. GM’s stock gained 187% over ten years versus Ford’s 62%,

344
0
Would love your thoughts, please comment.x
()
x