Nvidia's Earnings Drive Options Activity as Traders Target $260 Price Level
Following a strong earnings report, Nvidia (NVDA) has seen increased options trading activity with traders eyeing the $260 price level. The chipmaker reported Q2 fiscal 2027 revenue of $96.2 billion, up 106% year-over-year and exceeding Wall Street estimates. Data-center sales surged to $89 billion, a 117% increase from last year, driven by strong demand for AI infrastructure. The stock rose nearly 9% after the report on August 27, pushing its market cap above $5.4 trillion. The options chain now shows significant open interest in calls at higher strike prices, with the Sept. 25 expiration's $260 call being the most watched. Analysts are assessing whether Nvidia’s momentum can push it to this level within a month. Nvidia remains well-positioned across multiple high-performance computing markets including AI data centers and gaming. Its forward P/E ratio of 23.8 is slightly above sector averages, but strong earnings growth continues to justify investor optimism.
Tickers: $NVDA
Topics: AI chips data-center sales Nvidia options trading revenue growth