Nvidia is set to report its fiscal second-quarter earnings, with Wall Street anticipating adjusted earnings per share of $2.10 and revenue of $92.18 billion, nearly double from the previous year. The options market indicates a potential 5% stock price movement following the earnings release.
CNBC Pro analyzed stocks that have historically reacted to Nvidia's earnings, identifying a 'sympathy' group that includes Advanced Micro Devices (AMD), which has a 0.75 correlation to Nvidia and has moved in the same direction on nearly 70% of earnings-reaction days.
Other notable companies in this group include Vertiv, Onto Innovation, Marvell, and Micron, highlighting Nvidia's influence on the semiconductor sector and AI infrastructure. Conversely, an 'anti-Nvidia' group, which includes defensive stocks like Pfizer and McDonald's, showed negative correlations, indicating that these stocks tend to move in the opposite direction of Nvidia's performance.
This divergence suggests that Nvidia's earnings may reflect broader market trends, with growth and AI stocks reacting positively while defensive stocks perform better in risk-off environments