How Nvidia is still making history

The numbers don't lie: Nvidia ( NVDA ) has never had more influence on the broader stock market than right now. Nvidia now accounts for about 8% of the S&P 500's ( ^GSPC ) market cap, near its highest proportion on record per data from Augur Infinity (chart below). At a market cap of $5.4 trillion (and climbing), Nvidia's value is now bigger than that of five of the S&P 500's 11 sectors. The AI chip darling's market cap also exceeds the combined value of the energy, utilities, real estate, and materials sectors in the S&P 500.

"Nvidia is making history," strategists at The Kobeissi Letter said.

The history is not coming without a host of very good reasons.

Nvidia said after reporting its fiscal second quarter earnings that it sees 70% revenue growth for fiscal year 2028. This was above analyst forecasts for 45% growth. The sales gain would be larger — think in excess of 100% — if not for memory chip shortages , said Nvidia CEO Jensen Huang.

The company saw adjusted earnings per share of $2.22 on revenue of $96.2 billion in its just-reported quarter. These were better than the $2.09 per share the Street had expected and revenue of $92.3 billion.

Nvidia's Data Center revenue, which includes Hyperscalers and AI Clouds, Industrial, and Enterprise (ACIE), came in at $89 billion versus a projected $85.8 billion.

Edge Computing, which includes Nvidia's other businesses, such as physical AI and gaming, brought in $7.2 billion. Analysts were expecting $6.6 billion.

Nvidia projected fiscal third quarter revenue of between $105.8 billion and $110.1 billion. Wall Street was calling for $105.1 billion.

"We think Nvidia has two catalysts: 1) Entering aggressive capital return cycle, and 2) potential to stabilize, if not gain share in 2027. At 13x our calendar year 2027 EPS estimate, we view Nvidia as one of the most compelling risk/reward ratios in our coverage universe," said Evercore ISI analyst Mark Lipacis.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.