Nvidia Stock Gains 4% Before Highly Anticipated Earnings Release

Nvidia (NVDA) stock jumped over 4% on Wednesday as investors eagerly awaited the company’s fourth-quarter earnings report.

The AI chipmaker’s results will be a major test for the industry, as Wall Street watches whether Big Tech firms continue heavy investments in AI infrastructure.

Tech giants like Microsoft, Amazon, Google, and Meta spent an estimated $44 billion on Nvidia’s powerful AI GPUs last year. Analysts expect Nvidia’s revenue to rise 73% to $38.2 billion and earnings per share to increase 63% to $0.84.

Despite the recent surge, Nvidia stock has faced challenges. Over the last six months, shares have stalled, and in the past week, the stock dropped 9% due to concerns over inflation and potential U.S. trade restrictions on the chip sector. There are also worries about delays in Nvidia’s Blackwell AI chips.

However, analysts remain bullish on Nvidia’s future. Out of 60 analysts tracked by Yahoo Finance, 56 have Buy ratings, with an average 12-month price target of $171.64. Historical trends suggest that holding Nvidia stock for three months after earnings has yielded an 18% return on average.

With the earnings report due after the market closes, investors are watching closely to see if Nvidia can continue its dominance in AI hardware.