NVIDIA Corp will announce Q1 results for the 2023 fiscal year ending April 30 on Thursday morning Beijing time. Bank of America Corporation analyst Vivek Arya gave Nvidia a "buy" rating with a target price of $320. Arya believes that NVIDIA Corp's cloud computing and gaming business is expected to continue to grow.

Arya said the semiconductor industry as a whole remained strong, but this could be due to "tight supply", which investors feared was "the potential calm before the 2023 recession storm".

On the recent fall in semiconductor stocks, Arya noted that it "seems to be more about resetting valuations based on the new interest rate mechanism than a structural shift in demand drivers." Arya said NVIDIA Corp and other cloud computing-related companies, such as AMD (AMD.US), MRVL.US and Broadcom Ltd (AVGO.US), are "facing elastic demand".

Other semiconductor companies facing flexible demand include companies related to the automotive industry, such as on Semiconductor (ON.US), and semiconductor equipment companies, including KLAC.US and Applied Materials Inc (AMAT.US).

Maywell Technology and NVIDIA Corp are expected to report strong quarterly results this week, highlighting their strong growth in telecoms, networking and cloud computing, Morgan Stanley said on Monday.

Stacy Rasgon, an analyst at Bernstein, said he was not optimistic about NVIDIA Corp's Q1 performance, lowering his target price from $325 to $225, still maintaining a "outperform" rating.