US STOCKS-Wall Street futures climb as chip stocks rebound ahead of Nvidia results

* Futures up: Dow 0.2%, S&P 500 0.4%, Nasdaq 0.7%

* Target (TGT) up after lifting forecast

* Nvidia (NVDA) to report earnings after markets close (Updates prices, analyst comments)

By Ragini Mathur and Utkarsh Hathi

May 20 (Reuters) - U.S. stock index futures edged higher on Wednesday as chip stocks steadied ahead of Nvidia's (NVDA) earnings report, 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 1.9% 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.

"There's a lot riding as ever on Nvidia (NVDA). It always gets the top billing whenever it rolls around and certainly is the last big event of the season," said Chris Beauchamp, chief market analyst, IG Group.

"It does feel like this is still a market that very much wants to rally ... we'll just have to see whether Nvidia (NVDA) can keep stoking the fuel for the fire and keep the party going."

The broader chip sector also advanced on Wednesday, helping drive gains across equity futures. Marvell Technology (MRVL) rose 4.7%, Intel (INTC) gained 4.2% and Micron Technology (MU) added 3.9%, while the iShares Semiconductor ETF climbed 2.2%.

At 7:25 a.m. ET, Dow E-minis were up 107 points, or 0.22%, and S&P 500 E-minis were up 26.5 points, or 0.36%. Nasdaq 100 E-minis were up 193.5 points, or 0.67%.

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

The benchmark 10-year Treasury yield, which touched a 16-month high of 4.687% in the previous session, eased to 4.6393% on Wednesday.

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.

Brent crude futures slipped 3.3% to $108.38 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.

Investors are also awaiting the minutes from the Fed's latest meeting -scheduled to be released later in the day - for clues on policymakers' thinking, as expectations for a rate hike continue to grow.

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 13.2%, from 4.2% a week earlier.

Among other movers, Vans owner VF Corp (VFC) gained 5.7% as its fourth-quarter revenue beat Wall Street estimates.

Retailer Target (TGT) gained 1.9% after doubling its annual sales growth forecast, while home improvement firm Lowe's dipped 3% as the company reaffirmed its full-year forecast. (Reporting by Ragini Mathur and Utkarsh Hathi in Bengaluru; Editing by Pooja Desai and Maju Samuel)