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* Futures up: Dow 0.1%, S&P 500 0.3%, Nasdaq 0.6%

May 20 (Reuters) - U.S. stock index futures edged higher

on Wednesday as chip stocks steadied ahead of Nvidia's ( NVDA ) earnings,

which investors view as a crucial test of AI demand amid

concerns about elevated Treasury yields.

Nvidia ( NVDA ), the world's most valuable company and the

centerpiece of the global AI boom, rose 1.6% in premarket

trading ahead of its quarterly results, which are expected after

the closing bell.

Investors will crunch the numbers for signs that appetite

for AI infrastructure remains strong enough to support lofty

valuations across the technology and AI space.

The broader chip sector also advanced on Wednesday, helping

drive gains across equity futures. Marvell Technology ( MRVL )

rose 5%, Intel ( INTC ) gained 4.9% and Micron Technology ( MU )

added 3.9%, while the iShares Semiconductor ETF climbed

2%.

U.S. stocks have come under pressure in recent days as a

selloff in global bond markets drove yields higher.

Traders have ramped up bets the U.S. Federal Reserve could

raise interest rates at the turn of the year as the conflict in

the Middle East pushes oil prices higher, reviving inflation

worries.

The benchmark 10-year Treasury yield, which touched a

16-month high of 4.687% in the previous session, eased to

4.6533% on Wednesday.

Brent crude futures slipped 1.8% to $109.29 a barrel

after U.S. President Donald Trump again said the war with Iran

would end "very quickly." Still, investors remained cautious

over the outcome of peace talks as disruptions to Middle Eastern

supply continued.

At 05:39 a.m. ET, Dow E-minis rose 34 points, or

0.07%, S&P 500 E-minis gained 19.5 points, or 0.26%, and

Nasdaq 100 E-minis added 169.25 points, or 0.59%.

Investors are also awaiting minutes from the Fed's latest

meeting for clues on policymakers' thinking, as expectations for

a rate hike build.

Markets are now pricing in a more than 40% chance of a

25-basis-point rate hike in December, according to CME's

FedWatch tool. Expectations for a 50-basis-point increase that

month have risen to 13.5%, from 4.2% a week earlier.

Among other major movers, Analog Devices ( ADI ) climbed

3.8% after the chipmaker said it would acquire Empower

Semiconductor for about $1.5 billion in cash, expanding its

AI-focused power management portfolio.