Nvidia shares gain as ASML and Foxconn both say they still see strong signs of demand for artificial-intelligence semiconductors.

"Even with a decelerating growth rate on huge numbers, Nvidia's CY2025 PEG ratio stands at about 0.8x on our estimates. This ratio is 33% less than Broadcom's and the lowest in the Mag 7 by a wide margin," Reitzes said. Nvidia stock is up 197% year-to-date and trading about 2% below its record high of $149.77 per share.

Nvidia’s earnings could give a jolt to other AI semiconductor plays if the outlook impresses, but don’t expect software stocks to lose shine during a seasonally strong quarter.

Nvidia (NASDAQ: NVDA) has been the flag bearer for the artificial intelligence (AI) investing revolution since shortly after OpenAI's ChatGPT launched in November 2022. However, attention on the stock has waned in recent weeks as investors focused more on the presidential election results.

Nvidia reports its much-awaited third-quarter results next Wednesday after the market close. On Wednesday Mizuho analyst Jordan Klein said that analyst estimates for its January quarter are targeting $36 billion to $39 billion in revenue.

Nvidia could miss earnings expectations in its coming report but that's not a reason to doubt the stock, according to Citi analysts.

The company has regularly impressed the market with earnings ahead of expectations but it might struggle to do so this time.