Nvidia Corporation ( NVDA ) shares are trading higher Wednesday as investors brace for the company's first-quarter earnings report after market close.

What To Know: The slight move upward reflects cautious optimism, with the stock under close watch given Nvidia's ( NVDA ) central role in the AI chip market and its weighting in major indices.

Analysts expect Nvidia ( NVDA ) to post record quarterly revenue of $43.54 billion, an increase from $26.04 billion in the same quarter last year. Analysts expect adjusted earnings per share of 88 cents, up from 61 cents year-over-year. Nvidia ( NVDA ) has beaten revenue estimates for 10 straight quarters and earnings estimates for the last nine, setting high expectations for this week's results.

What Analysts Are Saying: Despite these strong historical performances, some analysts are warning of headwinds. Piper Sandler's Harsh Kumar pointed to macroeconomic uncertainty and ongoing export restrictions to China, particularly concerning the H20 AI chip. Kumar noted that a revamped chip for the Chinese market is unlikely to be commercialized until later in the July quarter, potentially affecting the company's near-term guidance. Still, he maintained an Overweight rating and a $150 price target, advising investors to remain long-term bullish.

Freedom Capital's Jay Woods emphasized three focal points for the upcoming report: sales of the Blackwell chip, updates on the China export situation and future guidance. Nvidia's ( NVDA ) ability to navigate regulatory challenges and maintain its dominant position in AI computing will be critical to investor sentiment going forward.

While revenue from Nvidia's ( NVDA ) Data Center segment hit a record $35.6 billion in fourth-quarter, questions remain about whether the growth rate can be sustained, especially as segments like Gaming and AI PC saw year-over-year declines. Nvidia’s Automotive division posted over 100% growth but remains small in terms of total revenue contribution.

The broader market impact of Nvidia's ( NVDA ) earnings will also be significant. The stock is among the largest holdings in both the S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), meaning a substantial move in NVDA could ripple across major indexes.

Nvidia ( NVDA ) shares have risen more than 18% over the past year but are down 2.2% year-to-date. Investors will be closely watching whether Nvidia ( NVDA ) can maintain its momentum or if concerns about regulation, competition from AMD and a potential slowdown in AI-driven growth begin to weigh more heavily.

NVDA Price Action: Nvidia ( NVDA ) shares were up 0.97% at $136.82 at the time of writing, according to Benzinga Pro.

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