Nvidia Corp. share price traded 2% higher after the US stock market opened on Wednesday, hours before the world’s most valuable company declares its third quarter results. The market cap stands at $4.2 trillion.
The tech-heavy Nasdaq Composite rose 0.25% and the US benchmark S&P 500 gained 0.2%.
Analysts expect the company to show more than 50% growth in both net income and revenue in its fiscal third quarter.
Nvidia shares have plunged more than 12% since hitting a peak four weeks ago amid concerns over a bubble in artificial intelligence counter. Despite the recent selloff, the stock is up 35% this year, more than twice the almost 17% return of the Nasdaq 100 Index.
The recent dip has made the company’s valuation relatively attractive. Nvidia trades at about 29 times forward earnings, far below its 10-year average of 35 and a slight premium to the Nasdaq 100’s multiple of roughly 26, as per Bloomberg.
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