Nvidia (NVDA), the industry leader in artificial intelligence (AI) technology, is poised to release its highly anticipated third quarter earnings report after the bell on Tuesday. Wall Street is eagerly awaiting updates on the company's performance amidst the ongoing AI hype cycle.

This report follows Nvidia's stock reaching a record high of $504.09 per share on Monday, with AI once again capturing the attention of investors. The recent news of Sam Altman's departure from OpenAI and his move to join Microsoft has further fueled the interest in AI-related investments.

The expectations for Nvidia remain elevated, as the company has become synonymous with the 2023 AI narrative. Analysts have compiled their predictions for the quarter, comparing them to the company's performance in the same period last year.

According to Bloomberg, the expected revenue for Q3 is $16.1 billion, a significant increase from $5.93 billion in the previous year. The projected adjusted EPS is $3.36, compared to $0.58 in Q3 2022. Data center revenue is expected to reach $12.82 billion, reflecting a substantial rise from $3.83 billion in the same quarter last year. Similarly, gaming revenue is expected to grow to $2.7 billion, up from $1.57 billion in Q3 2022.

Investors are particularly interested in Nvidia's revenue outlook, with Wall Street expecting a fourth-quarter guidance of $17.8 billion. The company's revenue guidance has consistently surprised investors throughout the year.

In August, Nvidia's stock soared to an all-time high following its second quarter results, which exceeded Wall Street's expectations in terms of revenue, earnings per share, and future guidance. The company's forecast was praised by analysts, who described it as "guidance for the ages."

Bank of America research analyst Vivek Arya stated that he expects Nvidia to surpass consensus estimates in the upcoming earnings release. The firm remains optimistic about the stock, citing its compelling valuation and favorable seasonal trends.

However, the stock experienced a brief decline after the August report, as investors began questioning Nvidia's valuation. Updates on chip restrictions in China also raised concerns about the potential market size for the company's products. In response, Nvidia filed a communication with the Securities and Exchange Commission (SEC), stating that it does not anticipate any immediate impact from the new restrictions.

Analysts, such as Ruben Roy from Stifel, expect Nvidia to address this issue in its earnings report. Roy believes that there is significant demand for Nvidia's products globally, excluding China. He emphasized that the United States, major cloud service providers, and other regions, such as Europe, Japan, and South Korea, present substantial opportunities for Nvidia to capitalize on AI growth.

Nvidia has been a driving force behind the stock market's momentum this year as one of the "Magnificent Seven" stocks, alongside Apple, Alphabet, Microsoft, Amazon, Meta, and Tesla.

Julian Emanuel, senior managing director at Evercore ISI, recently commented that "it's still NVDA's world," cautioning investors to prepare for potential "post-NVDA volatility" regardless of the stock's direction.