India, Aug. 22 -- Nvidia is set to report its latest earnings on August 26, but Wall Street is not simply waiting to see whether the chip giant beats estimates. Investors already expect Nvidia to deliver a strong quarter and for CEO Jensen Huang to give a very positive outlook during the earnings call.

That creates a bigger challenge for the company because a strong earnings report may not be enough to push the stock much higher. Yahoo Finance reported that expectations are already running very high ahead of the results.

Nvidia shares have also been doing well ahead of the earnings report. The stock has outperformed the S&P 500 by about five percentage points over the past month, according to Yahoo Finance AlphaSpace data. That strong p...