US stock futures climb as chip stocks rebound ahead of Nvidia results

May 20 (Reuters) - U.S. stock index futures edged higher on Wednesday as chip stocks steadied ahead of Nvidia's (NVDA) earnings, which investors view as a crucial test of AI demand amid concerns about elevated Treasury yields.

Nvidia (NVDA), the world's most valuable company and the centerpiece of the global AI boom, rose 1.6% in premarket trading ahead of its quarterly results, which are expected after the closing bell.

Investors will crunch the numbers for signs that appetite for AI infrastructure remains strong enough to support lofty valuations across the technology and AI space.

The broader chip sector also advanced on Wednesday, helping drive gains across equity futures. Marvell Technology (MRVL) rose 5%, Intel (INTC) gained 4.9% and Micron Technology (MU) added 3.9%, while the iShares Semiconductor ETF climbed 2%.

U.S. stocks have come under pressure in recent days as a selloff in global bond markets drove yields higher.

Traders have ramped up bets the U.S. Federal Reserve could raise interest rates at the turn of the year as the conflict in the Middle East pushes oil prices higher, reviving inflation worries.

The benchmark 10-year Treasury yield, which touched a 16-month high of 4.687% in the previous session, eased to 4.6533% on Wednesday. [US/]

Brent crude futures slipped 1.8% to $109.29 a barrel after U.S. President Donald Trump again said the war with Iran would end "very quickly." Still, investors remained cautious over the outcome of peace talks as disruptions to Middle Eastern supply continued. [O/R]

At 05:39 a.m. ET, Dow E-minis rose 34 points, or 0.07%, S&P 500 E-minis gained 19.5 points, or 0.26%, and Nasdaq 100 E-minis added 169.25 points, or 0.59%.

Investors are also awaiting minutes from the Fed's latest meeting for clues on policymakers' thinking, as expectations for a rate hike build.

Markets are now pricing in a more than 40% chance of a 25-basis-point rate hike in December, according to CME's FedWatch tool. Expectations for a 50-basis-point increase that month have risen to 13.5%, from 4.2% a week earlier.

Among other major movers, Analog Devices climbed 3.8% after the chipmaker said it would acquire Empower Semiconductor for about $1.5 billion in cash, expanding its AI-focused power management portfolio.

(Reporting by Ragini Mathur in Bengaluru; Editing by Pooja Desai)