Options Traders Flood Nvidia with Nearly 30M Contracts as RBC Sets $240 Target
Nvidia shares climbed 2.9% to $188.58 after TSMC’s stronger-than-expected Q4 results and selective U.S. semiconductor tariff exemptions. In the past 10 trading days, over 19.8 million calls and 10 million puts changed hands—led by the Jan.9 weekly 190-strike call—while RBC initiated coverage with an Outperform rating and $240 target.
1. Options Traders Gravitate Toward NVDA
Over the past year Nvidia has consistently ranked among the highest-volume equities in the options market. In the last ten trading days alone, more than 19.8 million call contracts and over 10 million put contracts changed hands, according to Senior Quantitative Analyst Rocky White. The most active contract during this period was the weekly January 9th 190-strike call, with significant open interest also appearing in the January 2026 190-strike series. This sustained activity underscores growing speculative and hedging interest as traders position for further moves in the AI semiconductor leader.
2. TSMC's Q4 Beat Propels NVDA Momentum
Nvidia’s shares received a firm lift after Taiwan Semiconductor Manufacturing reported fourth-quarter non-GAAP earnings per share of 3.14 on revenue of 33.7 billion, surpassing consensus estimates of 2.98 and 32.73 billion respectively. Given TSMC’s role as Nvidia’s principal foundry partner, the stronger-than-expected fabrication results were interpreted as a bellwether for persistent global demand for Nvidia’s AI processors. This sector-wide tailwind added to positive sentiment following the U.S. administration’s targeted tariff measures that exempted key supply-chain chips from new levies.
3. Long-Term Performance and Valuation Metrics
Over the past twelve months, Nvidia has delivered a total return of 38.6%, cementing its position as the world’s most valuable public company by market capitalization. The stock is testing the lower bound of a downtrend trajectory established after reaching an all-time high in late October. Its current forward valuation stands at approximately 21.5 times projected sales and 40 times projected earnings, reflective of the market’s confidence in sustained double-digit growth in AI infrastructure spending despite premium multiples.
4. Analyst Sentiment and Price Targets
This morning RBC Capital Markets initiated coverage of Nvidia with an Outperform rating and a price target of 240, reflecting expectations for continued market share gains in AI compute and anticipated upside from next-generation product launches. Institutional ownership remains elevated, and Schaeffer’s Volatility Index for Nvidia sits at 36%—in the bottom 3rd percentile of its annual range—indicating that options traders are forecasting relatively subdued near-term volatility despite strategic catalysts on the horizon.