Shares of Nvidia and the broader semiconductor sector rallied Tuesday as investors positioned ahead of the AI chip leader's fiscal second-quarter 2027 earnings report, scheduled for release Wednesday after the market close. The report is widely regarded as one of the most closely watched catalysts of the third quarter for both the chip sector and the broader technology-led rally.
Wall Street analysts expect Nvidia to report revenue of roughly $92 billion, reflecting close to 96% growth from the year-ago period, with adjusted earnings per share projected near $2.09, up from $1.05 a year earlier. Nvidia's own guidance, issued in May, called for revenue of $91 billion, plus or minus 2%, driven primarily by continued strength in its data center business and the ongoing ramp of Blackwell-based products.
Chip stocks broadly advanced in premarket and early trading Tuesday as investors positioned for the print. Advanced Micro Devices and Micron Technology each rose more than 2%, while Intel climbed more than 3% and Broadcom added more than 1%. The iShares Semiconductor ETF moved up more than 2% as the rally extended beyond Nvidia itself. Memory-chip names Micron and SanDisk were among the session's strongest performers in early trading, according to streaming market data, with both stocks advancing steadily through the premarket session.
Despite the bullish setup, Nvidia's stock has had an uneven relationship with its own earnings reports this year. According to an analysis of the stock's post-earnings performance, Nvidia shares have declined following six of its last eight quarterly reports, including the previous four in a row, even as the underlying results consistently topped consensus estimates. That pattern reflects how elevated expectations have become for a company now valued at more than $5 trillion, where merely beating estimates may not be sufficient to move the stock higher.
NVDA closed at $214.72 last Friday, roughly 8% below its May record high above $236, though the stock remains up approximately 16% for the year. Options markets are pricing in a sizable move in either direction following Wednesday's report, reflecting the high stakes many investors are placing on the print as a bellwether for the durability of AI-related capital spending.
Nvidia's data center revenue, the primary driver of its growth, exceeded $75 billion in its prior quarter, dwarfing the comparable figures reported by rivals Advanced Micro Devices and Intel. Investors will be watching closely for management commentary on the pace of its next-generation Rubin platform rollout, as well as any signs of moderating demand from major cloud infrastructure customers that have collectively committed more than $200 billion in 2026 capital spending, much of it earmarked for AI data centers.
With the S&P 500 and Nasdaq having recently touched fresh highs on optimism around AI-driven earnings growth, Wednesday's report carries outsized importance for near-term market direction. A strong reaction across Nvidia and its chip-sector peers could extend the technology rally into the fall, while a disappointing response, even amid solid underlying results, could reignite questions about how much AI-related optimism is already priced into markets.