This Wednesday, all eyes are on Nvidia as it prepares to release its Q2 earnings—and the outcome could shake up the entire stock market.
With a massive $4.4 trillion market cap, Nvidia now makes up around 8% of the S&P 500, giving it unprecedented influence over the broader index. According to options data, this report could trigger Nvidia's biggest post-earnings stock move in over a year, potentially sending ripple effects across Wall Street.
Nvidia’s impact goes far beyond its own stock. As the undisputed leader in AI chips, its performance acts as a bellwether for the entire AI sector. When Nvidia stumbled last February, other tech and AI names including Broadcom, Marvell, Dell, and Palantir plunged alongside it. This earnings report comes at a pivotal moment. Despite recent gains, AI stocks are under pressure. A recent MIT survey revealed that most companies haven’t yet seen real ROI from their AI investments, and OpenAI CEO Sam Altman warned that investors may be too hyped on AI's near-term potential.
With tech valuations stretched and skepticism rising, Nvidia’s results could either reignite the AI rally or trigger a broader market pullback.
Stay tuned this could be one of the most important earnings events of the year.