Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

Options traders price in Nvidia's quarterly results as a more pivotal event for the broader market than the upcoming interest rate decision or the monthly inflation and jobs reports.

Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released results and an outlook that surpassed Wall Street expectations. Monitor these important chart levels.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.