According to a report by Reuters, this new development is coming on the heels of reactions that trailed the rising bets over its quarterly results, insinuating that Nvidia’s revenue target will once again surpass Wall Street estimates. This has in turn, lifted the stock about 19% from a two-month low.

It noted that the forecast on Nvidia leverages generative AI like ChatGPT and many of such services to forecast 110% growth in third-quarter revenue to $12.50 billion.

“It might be the most important report of this earnings season. We want to hear that they can build on the amazing quarter they had last quarter,” said Dennis Dick, market structure analyst at Triple D Trading.

Although the company had predicted two months ago that its second-quarter revenue was more than 50% above expectations, which pushed its market capitalization above $1 trillion, making its stock the best performer on the S&P 500 index as  stock market index which is one of the most commonly followed equity indices.

Brian Mulberry, client portfolio manager at Zacks Investment Management, said to keep the stock price where it is, they would want to see the bottom line start to support those share gains.

He noted that at least 19 brokerages have this month raised their target price on Nvidia, pushing the median view to $500, which is a 6.5% increase to stock’s last closing price, making Nvidia shares have more than tripled in value so far this year. While other experts stated that Nvidia (and) AI story is what is driving the market right now