NVIDIA Corp (NASDAQ:NVDA) could be in for a significant pullback following its upcoming earnings report, according to a Bank of America analyst.
What Happened: Bank of America’s Vivek Arya, a research analyst, has highlighted the possibility of a substantial decline in Nvidia’s stock value, reported Business Insider. Arya’s analysis suggests that the chipmaker’s stock could face an 11% implied post-earnings move, based on bullish buy-side estimates for Nvidia’s Q4 earnings, which are 9% above consensus.
Arya, however, believes that any potential decline would be temporary, driven by supply-side issues rather than shifts in demand and competition. He also expects the stock’s volatility to settle after Nvidia’s GPU Tech Conference in mid-March.