For years, Nvidia (NVDA) has been the king of earnings season—the stock that could single-handedly make or break market sentiment. But as the AI chip giant gears up for its latest report on Feb. 26, something has changed.
Nvidia is still a powerhouse, but for the first time in years, the market isn’t revolving around it. And that might actually be the best thing that’s happened to investors in a long time.
The Market Is Growing Up
In 2024, Nvidia was responsible for a staggering 20% of the S&P 500’s gains. This year? Just 5%. That shift might sound alarming, but it actually signals something incredibly bullish: the market is no longer just an AI-fueled hype train—it’s a balanced, broad-based rally.
Meta (META) has stepped up as the top driver of market gains, contributing 13.3% to the S&P 500’s rise. Other major players—Walmart (WMT), JPMorgan (JPM), Amazon (AMZN), Palantir (PLTR), and Eli Lilly (LLY)—are carrying their weight, proving that economic strength isn’t limited to just one sector.
Last year, the so-called “Magnificent Seven” tech giants were responsible for 55% of the market’s gains. Now, the rally is spreading, signaling something Wall Street has been waiting for: a market built on real, sustainable growth, not just the outsized performance of a handful of companies.
Is Nvidia Slowing Down? Not So Fast.
While Nvidia’s growth has cooled from its eye-popping 265% revenue spike last year, it’s still on track for a 73% increase this quarter—an astronomical number for a company of its size. The real reason the stock hasn’t surged after recent earnings? It’s not about demand—it’s about supply.
Big Tech isn’t slowing its AI investments. Meta, Amazon, and Alphabet are still pouring billions into Nvidia’s chips. The challenge? Nvidia literally can’t produce them fast enough. And if the biggest risk to your business is “we’re selling out too quickly,” that’s a good problem to have.
A Market at a Crossroads
So, is Nvidia losing its influence? Or is this just the natural next step in a maturing market?
The answer is both. Nvidia remains the backbone of AI, but the market no longer hinges on one company’s earnings report. Instead of a fragile, top-heavy rally, we’re seeing something far more bullish—growth that’s sustainable across multiple industries.
For investors, this isn’t bad news—it’s a sign of strength. And with AI demand still skyrocketing, Nvidia’s best days might still be ahead. The only difference? This time, it won’t be carrying the entire market on its back.
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