How Nvidia is still making history

Nvidia's (NVDA) influence on the stock market has reached unprecedented levels, accounting for approximately 8% of the S&P 500's market cap. This valuation places Nvidia above five of the 11 sectors within the index, including energy, utilities, real estate, and materials. Analysts from The Kobeissi Letter noted that Nvidia is making history, citing its impressive growth prospects.

After reporting its fiscal second quarter earnings, Nvidia projected a remarkable 70% revenue growth for fiscal year 2028, surpassing analyst expectations of 45%. CEO Jensen Huang attributed this growth to the absence of memory chip shortages. The company's fiscal second quarter earnings surpassed analyst forecasts, with adjusted earnings per share of $2.22 and revenue of $96.2 billion.

Nvidia's Data Center revenue reached $89 billion, exceeding expectations of $85.8 billion. Edge Computing, encompassing Nvidia's other businesses like physical AI and gaming, generated $7.2 billion, surpassing the projected $6.6 billion. Analysts anticipate Nvidia's fiscal third quarter revenue to be between $105.8 billion and $110.1 billion, surpassing the street's estimate of $105.1 billion.

Evercore ISI analyst Mark Lipacis believes Nvidia boasts compelling risk/reward ratios, with a 13x valuation to its calendar year 2027 earnings estimate.