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Nvidia's Premarket Trading Performance Ahead of Earnings Release

Shares in Nvidia (NASDAQ: NVDA) edged higher in premarket trading on Wednesday, as investors eagerly awaited the release of the chipmaker's latest quarterly results.

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Surge in Interest in Nvidia's AI Technology

California-based Nvidia, which manufactures the graphics processors that power generative artificial intelligence, has become a focal point in a surge in excitement over the nascent technology.

Nvidia's Tripled Share Price and Market Value Growth

Nvidia's share price has tripled this year, thanks in large part to a stellar forecast in May that propelled the stock's market value to above $1 trillion, on par with tech industry behemoths like Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL).

Impact of Nvidia's Growth on Big Tech and Stock Market Rally

The announcement initiated a fresh wave of hype around AI's potentially game-changing applications, a euphoria that in turn pushed up other Big Tech players and drove a broader stock market rally. The so-called Magnificent Seven group of mega-cap companies, which include Nvidia, have helped spur a more than 14% jump in the benchmark S&P 500 this year.

Nvidia's Influence on AI Boom and Broader Market Sentiment

Analysts have said that Nvidia's numbers and the outlook for the rest of the year could thus influence the near-term course of not only the AI boom but broader market sentiment.

Bloomberg's Consensus Estimates for Nvidia's Revenue

According to Bloomberg consensus estimates, Nvidia is projected to have posted revenue of $11.04 billion in its second quarter. Nearly three-fourths of the top-line figure is expected to consist of revenue from Nvidia's crucial data center business, which houses its all-important H100 chip used in AI-fueled platforms like OpenAI's ChatGPT.

Analysts' Forecast for Nvidia's Data Center Growth

In a recent note to clients, analysts at Piper Sandler said they believe the conversation around Nvidia will "boil down to the data center" unit. They added that they are confident the division will see "continued growth," so much so that they anticipate that data center revenues will reach $50B by Nvidia's 2025 fiscal year.