What's Going On With Nvidia Stock Wednesday?

Nvidia Corp NVDA, better known as the artificial intelligence kingpin, has enjoyed a stellar year and is in no mood to slow down.

The chipmaker gained over 215% YTD and over 50% last quarter as it tapped the ChatGPT frenzy by planning well in advance, beating its peers like Advanced Micro Devices, Inc AMD.

The trillion-dollar chipmaker looks to triple the production of its H100 AI processor for 2024 vs. the 500,000 units anticipated in 2023. No wonder it prompted Saudi Arabia and the United Arab Emirates (UAE) to acquire its high-end chips aggressively. Chinese tech companies, including Alibaba Group Holding BABA, have ordered Nvidia AI chips in bulk, fearing repercussions from U.S.'s sanctions.

Wall Street estimates a second-quarter revenue of $11.22 billion and adjusted EPS of $2.09 as the chipmaker braces to report its quarter results on Wednesday.

At least 11 analysts boosted their price targets on the stock in August.

After all, Nvidia's second-quarter earnings are beyond chip demand. It will also reflect other AI leaders like Microsoft Corp MSFT

 and Alphabet Inc (NASDAQ GOOG) GOOGL, per Wedbush analyst Dan Ives. Wedbush analyst Matt Bryson estimates Q2 revenue of $11.0 billion and EPS of $2.03. He believes Nvidia's future outcomes will surpass the Street's and Wedbush's current anticipations thanks to the lack of any other silicon supplier coming close to Nvidia's production magnitude.

Rosenblatt analyst Hans Mosesmann estimates Q2 revenue of $11 billion and EPS of $2.04. Oppenheimer analyst Patrick Scholes estimates revenue of $11.1 billion and EPS of $2.07 in Q2. The analysts boosted their price targets, citing the high-conviction story thriving amid uncertainty given secular AI, autonomous driving, and metaverse tailwinds.

Raymond James analyst Chris Caso raised the 2Q revenue and non-GAAP EPS from $11 billion and $2.04 to $11.2 billion and $2.11 thanks to H100 ramps.

Meanwhile, reports suggested the company's vulnerability to in-house chip building by Amazon.Com Inc AMZN, Microsoft, Meta Platforms Inc META, and Alphabet. Concerns loom in the form of U.S. AI chip sanctions on China, leading to Huawei Technologies and Alibaba building their own AI chips.

BofA Securities analyst Vivek Arya expects the sentiment to be more measured after last quarter's upbeat report.

Price Action: NVDA shares traded higher by 2.19% at $466.69 on the last check Wednesday.