Nvidia is gaining ground ahead of its investor day

• Nvidia is set to hold its annual investor event set at 11:30 AM ET on Tuesday.
• Nvidia's stock shed nearly half of its value from November to January after the chipmaker delivered disappointing third-quarter results and later cut its fourth-quarter revenue guidance.
• But shares recovered a bit as its fourth-quarter results topped Wall Street estimates and after it beat out Intel in the race for acquiring Mellanox Technologies.
• Watch Nvidia trade live.

Nvidia jumped 3.44% to $174.73 apiece early Tuesday, ahead of its annual investor event set at 11:30 AM ET.

Nvidia has a tendency to put out "pretty gaudy targets," Abhinav Davuluri, an analyst at Morningstar and Wall Street's biggest Nvidia bear, told Markets Insider recently.

Nvidia is likely to restate its estimate that the total addressable market for the data-center business will reach $50 billion by 2023 during the investor event, he said. But he warned investors Nvidia faces pretty decent competition in the data-center market.

"The market has expected that Nvidia can capture the majority of that," Davuluri said. "Other companies such as Amazon, Microsoft, and Facebook are also exploring similar opportunities."

Nvidia shares shed 57% of their value from October to January after the chipmaker delivered disappointing third-quarter results and later cut its fourth-quarter revenue guidance. The company cited an excess of mining graphics processing units (GPUs) following the crypto-currency boom, and declining macroeconomic conditions, particularly in China, for its underperformance.

But shares recovered a bit as Nvidia's fourth-quarter results topped Wall Street's expectations and after the company beat out Intel in the race for acquiring Mellanox Technologies, a supplier of computer-networking products. That deal is widely seen as a strategic bet that can help the chipmaker grab an even bigger piece of the growing data-center market.

Shares are up 17% this year and are 43% below their record high set in October.

Now read:

• Wall Street's biggest Nvidia bull and bear debate how crypto, data-center competition, and the China slowdown will impact the chip giant

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