Nvidia shares turned positive in premarket trading Tuesday, eversing early losses. The chip maker was expanding some gains from the previous day as the market remains largely optimistic ahead of earnings season for major technology companies.
Nvidia shares were up 0.2% at $144.00 in premarket trading.
The stock rose 4.1% on Monday and Nvidia closed with a market capitalization above $3.5 trillion for the first time, becoming the second company in history to do so after Apple.
The rally sets a high bar for Nvidia’s coming earnings, which the company will report on Nov. 20. Wall Street expects Nvidia’s per-share earnings to nearly double, to 74 cents, and revenue to come in around $32.9 billion, up from $18 billion last year.
Before then investors will get some insight into demand for Nvidia’s newest Blackwell chips with earnings reports from big technology companies including Microsoft coming at the end of this month.
To sustain Nvidia’s rally, the market will likely need to see companies like Microsoft commit to continued high capital spending and talk positively about revenue growth driven by AI demand.
“[Microsoft] Copilot data points are getting modestly better and we believe [Microsoft’s cloud-computing unit] Azure revenue will reaccelerate in C1H25 [the first half of 2025] with help from Nvidia’s Blackwell,” wrote Melius Research analyst Ben Reitzes in a research note on Monday.
Among other chip makers, Advanced Micro Devices was down 0.5% and Broadcom was falling 0.8% in premarket trading.