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(Reuters) – Nvidia (NASDAQ:NVDA) shares rose on Wednesday before the bell on growing expectations that the chip designer will deliver another strong outlook and boost markets as it reaps the benefits of early investments in artificial intelligence.

Shares of the most valuable chip company had briefly scaled a record high in the previous session, but ended 2.8% lower as overall markets slipped.

As investors up their bets on the company that virtually makes all chips used in generative AI such as ChatGPT, its stock has surged 13% in the past week and tripled in value so far this year.

“A lot is riding on these numbers, with the shares surging to fresh record highs ahead of their release,” said AJ Bell investment director Russ Mould.

“Given much of the gains made by equities in 2023 have been centered on Nvidia and the whole AI story, they are likely to have a significant impact on the wider market too.”

Nvidia’s stellar outlook in the previous quarter lifted the chip firm to a $1 trillion market value in May and set off a rally in the S&P 500 technology sector, which surged 8% in the five sessions after its results.

Options data showed the stock could swing nearly 11% by Friday, larger than the 8.6% average move in either direction seen a day after Nvidia’s results over the last eight quarters. It will still be below the 24.4% jump after the last earnings report.

Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) that have powered the S&P 500’s 14.3% rise this year.

Investors expect upbeat results from Nvidia, whose shares are the top performer on S&P 500 this year, to revive a stocks rally that has struggled in recent weeks.

The stock’s surge has pushed its valuation multiple to nearly 43 times the consensus earnings for the next 12 months, just below its three-year average of 45, according to Refinitiv data.

Wall Street expects the chip designer to report 112.6% jump in third-quarter revenue to $12.61 billion. Investors will be looking at sales at Nvidia’s data center unit, home to its prized H100 chip used in AI.

“Anything less than absolutely fantastic could trigger a sharp downside correction in Nvidia’s stock price,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.