* Indexes up: Dow 0.1%, S&P 500 0.3%, Nasdaq 0.4%

* Target ( TGT ) falls after results

* Lowe's fall after reaffirming annual forecast

* Nvidia ( NVDA ) to report earnings after markets close

(Updates for market open)

By Ragini Mathur and Utkarsh Hathi

May 20 (Reuters) - The tech-heavy Nasdaq led gains on

Wall Street on Wednesday, lifted by a rebound in chip stocks

ahead of Nvidia's ( NVDA ) quarterly earnings, which investors view as a

crucial test of AI demand.

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

centerpiece of the global AI boom, rose 0.7%. The

company'sresults 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 expectation is that Nvidia's ( NVDA ) earnings will be strong.

It's the extent to which they are stronger than what is

currently baked into markets will be important," said James

McCann, senior economist at Edward Jones.

"The bar continues to rise for some of these companies. Can

it continue to beat that bar? That's going to be a critical

aspect for investors."

The broader chip sector also advanced on Wednesday. Marvell

Technology ( MRVL ) rose 7.8%, Intel ( INTC ) gained 6.3% and

Micron Technology ( MU ) added 3.6%.

The Philadelphia SE Semiconductor index advanced

2.9%.

At 9:51 a.m. ET, the Dow Jones Industrial Average

rose 32.63 points, or 0.07%, to 49,396.51, the S&P 500

gained 18.25 points, or 0.25%, to 7,373.20 and the Nasdaq

Composite gained 105.36 points, or 0.43%, to 25,981.68.

Eight of the 11 main S&P 500 sectors were in the green, with

the tech sector leading gains with a 0.8% rise.

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

selloff in global bond markets drove yields higher.

The benchmark 10-year Treasury yield, which touched a

16-month high of 4.687% in the previous session, eased to 4.651%

on Wednesday.

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.

Brent crude futures slipped 3% to $108.82 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.

Investors are also awaiting the minutes from the Fed's

latest meeting -scheduled to be released later in the day - for

clues on policymakers' thinking, as expectations for a rate hike

continue to grow.

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 13.7%, from 4.2% a week earlier.

Among other movers, Intuit declined 3.5%. Reuters,

citing an internal memo, reported that the company is laying off

about 3,000 employees.

TJX gained 5.4% after the off-price retailer raised

its annual comparable sales and profit forecasts, banking on

resilient demand at its stores.

Target ( TGT ) shares fell 7.1% even after the retailer

doubled its annual sales growth forecast, while Lowe's

declined 3.8% as the home improvement firm reaffirmed its

full-year forecast.

Games and toy maker Hasbro ( HAS ) fell 8.8% after the

company reaffirmed its annual forecast.

Advancing issues outnumbered decliners by a 1.68-to-1 ratio

on the NYSE, and by a 1.61-to-1 ratio on the Nasdaq.

The S&P 500 posted seven new 52-week highs and 14 new

lows while the Nasdaq Composite recorded 32 new

highs and 104 new lows.