NVIDIA (NVDA) will report second quarter results after the bell and host a call at 5:30. 

NVIDIA is the leader in graphic processing units (GPUs), which is enjoying robust secular and cyclical tailwinds. 

The company has impressively beaten quarterly estimates and guided the following quarter above consensus eleven quarters in a row. The stock is up over 800% over that period (since November 2015). 

The Street is looking for Q2 adjusted EPS +83% to $1.85 with revenue up 39% to $3.1 bln. NVIDIA guided for non-GAAP EPS of ~$1.77-1.92 (assuming share count is flat Q/Q) on revenue of $3.04-3.16 bln.

The Street is looking for Q3 EPS up % to $1.99 with revenue up 27% to $3.34B.

Wall Street is mostly positive on the stock, but the median price target is just $285/share. Wells Fargo notably upgraded the stock two notches to Outperform from Underperform yesterday.

TECHS:

NVIDIA has a $160B market cap and trades at 33x non-GAAP EPS estimates. That is "frothy" for a chipmaker.

That said, NVIDIA's lead in the GPU market means the company's offerings are far from commoditized for now. The valuation reflects the company's secular growth tailwinds as opposed to the cyclical nature that most semiconductors are subject to. AMD (AMD) is the number two player in GPUs and CPUs and trades at ~40x EPS as it gains ground on Intel (INTC). The average chip stock trades with a mid-to-high teens EPS multiple 

Only 2% of the 582M share float is sold short. The options market implies a ~6% move in the stock tomorrow.