JPMorgan Eyes Upside for Nvidia Ahead of Earnings

Nvidia (NVDA) — the world’s most valuable stock — has lagged other semiconductor names over the past three months as investors await its fiscal Q3 2026 results due after Wednesday’s close.
Despite the recent underperformance, JPMorgan sees a strong opportunity for upside.

What JPMorgan Expects

Analysts at JPMorgan anticipate:

A strong earnings beat for the quarter
Positive commentary on supply from Nvidia and its suppliers
Ongoing surges in AI-related demand that could reignite momentum
A potential “catch-up trade” pushing NVDA back toward its all-time highs

Bram Kaplan, head of America equity derivatives strategy, wrote that a beat-and-raise quarter could “clear recent sector underperformance” and push the stock above its average historical earnings move.

The Bullish Options Strategy

JPMorgan recommends a call-spread strategy targeting this Friday’s expiry:

Buy NVDA calls @ $197.50 strike
Sell NVDA calls @ $207.50 strike
Both options expire this Friday

Key details:

Options-implied move: ±6.4%
Break-even price: ~$199.30
Max gain: ~550% of premium paid
Max loss: 100% (premium risk only)

Context: NVDA’s Recent Trading Range

Nvidia shares: $181.99 (-2.47%) pre-market
Trading range since late September: ~$180 to ~$210
Upper strike ($207.50) caps upside just below the October 29 intraday high of $212.19

JPMorgan believes the setup offers attractive risk-reward if Nvidia delivers another high-quality quarter and signals strong supply alignment for its AI chips.