Nvidia (NVDA Quick QuoteNVDA - Free Report) shares ended the last trading session 4.8% higher at $746.29. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 26.6% gain over the past four weeks.

The upswing came after Jefferies analyst Mark Lipacis raised his price target on NVIDIA to $854 from $740. The investment research firm’s new target price reflects an upward potential of approximately 14.4% from the stock’s yesterday closing price of $746.29.

This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $4.11 per share in its upcoming report, which represents a year-over-year change of +88.5%. Revenues are expected to be $6.31 billion, up 63.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Nvidia, the consensus EPS estimate for the quarter has been revised 36.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NVDA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>