Nvidia’s $220 Billion Rally to Test If Great Is Good Enough (2)

With Nvidia Corp. shares at record highs, it’s getting harder for investors to gauge how even potentially blowout earnings can push the stock higher.

The world’s most valuable chipmaker is expected to clear a high hurdle with its post-market release Tuesday — just as it did in the previous two quarters — with no signs of a slowdown in demand for its artificial intelligence computing chips.

Given its 240% gain this year, the stock has little room for error. This was illustrated in August when Nvidia saw the boost from a stellar earnings report fade, as S&P 500 ...