Nvidia surpasses Tesla to become the most traded stock ahead of expected earnings

• Ahead of this week’s earnings release, Nvidia has surpassed Tesla as the most traded stock.

• Nvidia’s earnings report is highly anticipated, with results to be announced on February 21st.

• The chipmaker’s stock price soared 47% in 2024.

Nvidia’s stock price continues to rise, and it has now surpassed Tesla as the most traded company on the market.

Over the past 30 trading sessions, traders have moved about $30 billion worth of Nvidia stock per day, according to a Reuters report citing data from LSEG. Tesla, which has led daily stock trading for the past few years, has averaged about $22 billion over the same period.

The Magnificent Seven chipmaker is on track for impressive profits in 2023, and is off to a great start this year with gains of 47% year-to-date.

Meanwhile, Tesla stock has been buoyed by uncertainty over the future of electric vehicle demand, Elon Musk’s ultimatum to the board of directors seeking greater control, and reports of partying and drug use by Musk and some board members. , down about 19.5% since the beginning of the year.

Nvidia is scheduled to release its financial results for the final three months of 2023 after the closing bell on Wednesday. Quarterly results are highly anticipated by investors, and analysts say a surprise in either direction could cause the stock to move wildly.

Wall Street continues to bet big on the disruptive power of artificial intelligence, and Nvidia has emerged as one of the clear winners of this trend. The chipmaker is currently the third most valuable U.S. company with a market capitalization of $1.8 trillion, surpassing the market caps of Alphabet and Amazon this month.

“Will this momentum continue? The answer is simple: Yes, it can,” Freedom Capital Markets strategist Jay Woods wrote in a note Tuesday.

“Here’s a fun fact,” he added. “Last year, the stock price was up 47% when the first quarterly report was released. That’s on par with the stock price gain this year. Granted, this was after a significant decline in 2022, but most did not believe that stock prices would continue to rise.

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Meanwhile, after a regulatory filing last week revealed that Nvidia owns shares in SoundHound AI, the small company’s stock price plummeted by 55% in a single day as the market took Nvidia’s stock as a vote of confidence. % soared. The excitement around AI has similarly helped Super Micro Computer’s stock price rise more than 900% in the last year.

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