Nvidia's upcoming earnings could swing the whole stock market higher as Wall Street's AI frenzy continues

• Nividia reports earnings next week, and the chipmaker's results alone could swing the stock market.
• That's according to Deepwater's Gene Munster, who cited Wall Street's frenzy over artificial intelligence.

Nvidia's earnings report next week could swing the overall stock market higher as Wall Street continues to focus on growth in artificial intelligence technology, according to Deepwater Asset Management's Gene Munster.

The chipmaker, which supplies processors that are key to AI development, will release second-quarter results after the close on August 23.

"We need to think a lot about Nvidia, because as Nvidia goes, so goes AI and so goes the Nasdaq," Munster told CNBC.

Shares were up 1.9% on Tuesday, bucking a broader stock market decline, and have soared more than 200% year to date. The Nasdaq has gained 30% this year, led by artificial intelligence stocks like Nvidia.

"All eyes are on their data center number," Munster added, noting that Wall Street's estimate for Nvidia's revenue from that segment is $8 billion. "If they exceed that, that's going to send the broader market higher, the broader Nasdaq higher. If they come in line, that's going to be a disappointment."

He agreed with a Morgan Stanley note Monday that predicted Nvidia will beat quarterly forecasts and raise guidance.

Munster also pointed out that Nvidia's CFO spoke at a conference in late June, just before management entered a quiet period leading up to the earnings report.

During the event, Nvidia highlighted strong demand worldwide and dismissed concerns about the effect of US-China trade restrictions, according to Munster.

"That's a pretty powerful comment going into the quiet period, and I think ultimately they are going to deliver on that," he said.

To put Nvidia's estimated data center revenue of $8 billion in the second quarter into more context, that would be up more than 110% from a year ago, he noted.

Meanwhile, Microsoft posted an overall fiscal fourth-quarter revenue gain of 10% in constant currency and a 17% gain in its cloud business.

"This is apples and oranges when it comes to leadership in AI," Munster said.