Nasdaq:NVDA Stock Price Prediction: What to Expect from Nvidia Earnings Report

U.S. stock futures slipped Wednesday as investors looked ahead to the widely-anticipated release of Nvidia's latest earnings report.

Nvidia is scheduled to post fiscal first-quarter results after the bell Wednesday, with analysts expecting another strong quarter from the chipmaker. The market rally has the potential to broaden beyond tech, depending on Nvidia's performance.

Dow Jones Industrial Average futures inched lower by 43 points, or 0.1%. Futures tied to the S&P 500 also slipped 0.1%, while Nasdaq 100 futures were marginally higher. Investors are eagerly waiting for clues on whether this year's tech rally can continue, as the Nasdaq Composite has surged 12% to record highs year to date.

Analysts predict that Nvidia's earnings and revenue will rise by 400% and 240% year on year, respectively. This data will play a crucial role in determining the future direction of the stock market, especially the NASDAQ:NVDA stock.

Traders will also be keeping a close eye on other companies reporting earnings, such as Analog Devices, TJX, and Raymond James Financial. The overall market sentiment will be influenced by these reports, along with minutes from the latest Federal Open Market Committee meeting and April's existing home sales.

Target reported earnings that missed expectations, leading to a 7% drop in shares. On the other hand, Urban Outfitters saw a 6% increase after exceeding expectations in its latest quarter. Homebuilder Toll Brothers also saw a 1% increase after surpassing analysts' estimates and raising its full-year delivery guidance.

It is important for the earnings season to end on a strong note to sustain the current market rally. Charles Schwab's chief investment strategist, Liz Ann Sonders, emphasized the need for earnings to catch up with the market's multiples, highlighting the significance of Nvidia's upcoming report.