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How To Trade NVDA Earnings Tomorrow

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 2/24/2025 4 min read
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When companies announce quarterly earnings, it’s an opportunity for investors and traders to assess the value of a company and its stock.

When NVIDIA Corporation (NASDAQ: NVDA) announces earnings, we get a peak inside the strength of the entire U.S. AI market.

NVDA is currently the beating heart of the AI sector. It provides other tech companies with precious high-processing microchips that developers need to build an AI.

And since NVDA’s former earnings announcement, on November 20, 2024, China’s DeepSeek hit the market. A critically acclaimed open source AI from China that utilizes far fewer NVDA-grade chips than previously thought possible.

NVDA’s next earnings announcement is tomorrow, Wednesday, February 26.

Take a look at the multi-month chart of NVDA below. Every candle represents one trading day:

NVDA chart multi-month, 1-day candles Source: StocksToTrade

The company outperformed analyst expectations when it announced earnings, but the expectations of the market were far greater.

The truth is, nobody knows which way NVDA will move after the company announces earnings.

But … Despite the uncertainty, I have a tried and tested plan to trade  the volatility.

Trade Opportunities

After NVDA’s earnings announcement on November 20, during the selloff, there were other AI stocks that gave us opportunities to profit.

For example, SoundHound AI Inc. (NASDAQ: SOUN) shot to new all-time highs after November 20.

Take a look at the chart of SOUN below. Every candle represents one trading day:

SOUN stock chart with trade annotations
SOUN chart multi-month, 1-day candles Source: StocksToTrade

I’d rather trade SOUN’s volatility than NVDA’s wimpy price action.

That’s why, when NVDA announces earnings tomorrow, my attention is on a different kind of stock …

The True NVDA Trade Opportunity

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As I’ve already demonstrated, NVDA’s price action is unpredictable after it announces earnings.

The company beat expectations during the last earnings announcement but stock prices still dropped.

Savvy traders protect themselves from this phenomenon with a rule called, “buy the rumor, sell the news.”

It means: We can trade the volatility before and after the announcement, but we don’t want to hold shares through the announcement.

Once we get a sense for the direction of the volatility, we can make more-informed trades.

Before and after the NVDA earnings this week, I’m looking for bullish volatility from other AI-affiliated stocks.

SOUN is just one example. I’ve got a whole watchlist that’s full of low-priced AI runners.

For a few more, look at the post below:

This market is full of low-priced stock spikes that are perfect for small account traders.

And the NVDA earnings tomorrow will give us even more volatility to trade!

That’s why, tonight, at 8 P.M. Eastern I’m going LIVE to outline my trade plan.

This is happening right before the NVDA data tomorrow …

Reserve your spot now!

Cheers.

 

*Past performance does not indicate future results

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”