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After a recent string of recent troubles for

Nvidia
,
investors are wondering how soon the chip maker’s business can bounce back. They will get an important update after the close Wednesday when the company posts its latest numbers and outlook.

Earlier this month,

Nvidia

(ticker: NVDA) pre-announced disappointing results for its fiscal second quarter. At the time, the company said it expects July quarter revenue to be $6.7 billion, significantly below its $8.1 billion prior guidance. It cited weaker-than-expected gaming segment sales and a difficult macroeconomic environment, while adding that “challenging market conditions” are expected to continue in the fiscal third quarter.

Since then, Wall Street analysts have been lowering their consensus numbers for Nvidia. They now estimate the company to report July quarter revenue of $6.7 billion—in line with Nvidia’s latest forecast—with adjusted earnings per share of 50 cents. Analysts’ forecast for the current quarter’s revenue is $6.9 billion.

Earlier this week, Bernstein analyst Stacy Rasgon reaffirmed his Outperform rating on Nvidia stock, citing its future pipeline of products.

“We can see reason for optimism once we get through the current headwinds,” he wrote.

However, some other analysts are worried that demand for Nvidia’s graphics card might stay weak due to its exposure to crypto-mining, elevated pricing for its high-end cards, and the negative effects from a deteriorating global economy.

Nvidia’s stock has declined by 42% this year as of Tuesday’s close, versus the 28% drop in the

iShares Semiconductor ETF

(SOXX), which tracks the performance of the ICE Semiconductor Index.

Write to Tae Kim at tae.kim@barrons.com