This is a red-hot market that needs Nvidia (NVDA) to have a huge earnings day on Wednesday evening.
Nvidia is the straw that stirs the market’s drink: Sure, the main AI stories that have captivated investor minds this year include Intel (INTC) showing signs of life and stock explosions at SanDisk (SNDK) and Micron (MU) because of memory chip shortages. But the reality is that Nvidia remains the main driver of the broader market due to its outright size. Nvidia accounts for a leading 9% of the S&P 500’s (^GSPC) market cap weight, according to data from Goldman Sachs strategist Ben Snider.
The stock has contributed 20% of the aggregate S&P 500’s year-to-date return. Shares are up 21% year to date, outperforming the S&P 500’s 7% advance. Alphabet (GOOG, GOOGL) is second on the contribution front, and the aforementioned Micron is a distant third.