Investing.com - NVIDIA Corporation (NASDAQ:NVDA), a leading name in the technology sector, is set to release its earnings report after the market closes on Tuesday, November 
Analysts are anticipating earnings of $3.10 per share, with revenue expected to hit $14.89 billion. This is a significant increase from the same quarter last year when earnings were 58 cents per share on revenue of $5.93 billion.
Nvidia's performance has been nothing short of remarkable. With stock gains nearing 240% year-to-date, far outpacing the S&P 500 index's 17% rise, the company has left market analysts searching for new accolades. Over the past one and three years, the graphics chip giant has seen its stock surge by 210% and 265%, respectively.
Despite the impressive stock performance, Nvidia shares still appear to be undervalued. As the company's stock has climbed, it has consistently raised its profit forecast, demonstrating that the excitement around artificial intelligence (AI) and generative AI is not just passing hype.
Nvidia's Q2 results and Q3 projections indicate an insatiable demand for AI, particularly in the datacenter sector, where the company's revenue has tripled year-over-year. Analysts are therefore predicting further growth for Nvidia, with a consensus price target of $580. From the current levels of $493, this suggests potential gains of nearly 20%.
In Q2, Nvidia reported an adjusted EPS of $2.70, surpassing analysts' expectations by a significant 30%. To put this in perspective, Nvidia not only exceeded its own guidance of $2.07, but also significantly outperformed the consensus estimate of $1.07 per share from the same quarter last year. Q2 revenue also exceeded Wall Street estimates by a substantial 22%, reaching $13.51 billion, compared to the expected $11.1 billion.
Introduced in 2022, Nvidia's generative AI accelerators have already gained market share from competitors still in the developmental stage. To maintain its upward stock trajectory, Nvidia must continue to emphasize its growth prospects for the upcoming quarter and beyond in Wednesday's announcement.