Nvidia closed out the so-called Mag 7 reporting season with another quarter of rapid expansion, driven by continued demand for its AI-focused hardware. The company delivered adjusted EPS of $1.87, more than doubling from a year earlier, while revenue climbed 85% year-on-year to a record $81.6bn.<\/p>\n
Data Center remained the main engine: sales reached $75.2bn, also a record, and rose 92% from the prior-year period, supported by ongoing appetite for GPUs. The update also referenced positive revisions to EPS expectations for the current and next fiscal year, and the stock carries a Zacks Rank of #2 (Buy).<\/p>\n
With these record-breaking results now behind us, we see a clear path forward for the stock. The sustained 92% growth in the Data Center segment confirms the AI infrastructure buildout is not slowing down. This fundamental strength should provide a tailwind for the stock price over the next several weeks.<\/p>\n
We\u2019ve seen implied volatility on NVIDIA options drop significantly since the earnings release, settling from pre-announcement highs of over 75% to a more stable 48% now. This post-earnings volatility crush makes buying options, rather than selling them, a more attractive strategy for capturing upward movement. Cheaper premiums allow for better leverage on our bullish outlook.<\/p>\n
The broader market supports this view, with the Nasdaq 100 up 3.5% this month and overall tech spending forecasts remaining robust. Recent data shows enterprise AI investment commitments for the second half of 2026 are already 15% higher than last year. This macro environment confirms that the demand drivers for NVIDIA’s products are secure.<\/p>\n
Therefore, we are looking at buying call spreads expiring in late June and July 2026 to capitalize on this expected momentum with a defined risk profile. Another approach we favor is selling out-of-the-money puts to collect premium, taking advantage of the still-elevated volatility compared to the broader market. We must watch for any changes in capital expenditure plans from major cloud providers as a key indicator.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nvidia posted record revenue and data center growth; easing volatility supports bullish call spreads and put-selling.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33],"tags":[],"class_list":["post-47599","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t