Nvidia stock was falling Monday amid reports that a company executive had met with Chinese officials.Shares in the semiconductor manufacturer, which have tripled in value over the past year, declined 3.

Earnings per share of 78 cents more than doubled (up 111%) from a year earlier. 💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸 And the revenue for the period exceeded Nvidia's total revenue in fiscal 2023.

Discover key insights, expectations and market trends to watch ahead of Nvidia’s earnings report. Here’s what investors should know.

Investors have high hopes for the chipmaker, the world’s most valuable company, which has enormous influence over the stock market.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Options traders price in Nvidia's quarterly results as a more pivotal event for the broader market than the upcoming interest rate decision or the monthly inflation and jobs reports.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Nvidia's (NVDA) extraordinary journey in 2024 has redefined the boundaries of corporate valuation, catapulting the chipmaker to become the world's most valuable company at peaks north of $3.6 trillion.