Nvidia (NVDA - Get Report) , one of the stock market's best performers over the last year, is slated to report second quarter earnings after the market closes on Thursday, and investment firm Jefferies is projecting the chipmaker to top expectations.

Jefferies analyst Mark Lipacis on Wednesday reiterated his "Buy" rating on Nvidia's stock with a $180 price target, a roughly 8% upside from Thursday's midday price.

For the July quarter earnings we "see upside to estimates in gaming and data center. We think core PC Gaming will benefit from increased demand for Nintendo's (NTDOY) Switch and mining GPUs for cryptocurrency," Lipacis wrote in a note to clients obtained by CNBC.

Lipacis pointed out that AMD's (AMD - Get Report) and Intel's (INTC - Get Report) recent strong product pricing trends are positive read-throughs for Nvidia.

"Both INTC and AMD reported ASP [average selling price] related upside in client computing during 2Q17, we believe NVDA will report similar ASP benefits in its July quarter results," he wrote.

Lipacis is also bullish on the company's prospects.

"We expect NVDA to begin shipping its next-gen Volta GPU architecture optimized for neural network training [artificial intelligence] in 3Q17," he wrote. "Our field work indicates that the tensor cores (matrix multiplication) NVDA has put into Volta extends NVDA's lead over competitive merchant neural networking processors."

Nvidia stock traded down 3.4% midday Thursday to $166.11 per share. 

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