Expectations for Nvidia’s upcoming earnings release on Wednesday are rising sharply, which may challenge the AI chipmaker's ability to exceed investor expectations. In just 48 hours, consensus estimates for Nvidia's second-quarter revenue have increased by $170 million to $28.84 billion, and net income projections have climbed $120 million to $14.95 billion. Nvidia shares have surged over 4% on Friday and have skyrocketed approximately 160% since the start of the year, reflecting heightened investor optimism.

Analysts, including those from Wedbush, Raymond James, and KeyBanc, anticipate a standout performance from Nvidia, driven by significant enterprise AI demand and substantial spending by major tech companies like Amazon and Google. However, some concerns remain about potential delays in Nvidia’s Blackwell AI chip. With over 95% of analysts recommending a “buy” and a consensus price target of $144.83, Nvidia's stock performance will be closely watched in light of these high expectations.