Nvidia (NVDA) stock opened at $220.60 on Tuesday and gained more than 3% during the session, as the company continues to set records for its influence on the broader market.

With a market capitalization of $5.4 trillion, Nvidia now accounts for roughly 8% of the S&P 500, close to the highest proportion ever recorded for a single company in the index, according to data from Augur Infinity. That valuation exceeds the combined value of five of the index's 11 sectors, including energy, utilities, real estate, and materials. The figure underscores how quickly index leadership has concentrated in a handful of mega-cap technology names: because funds that track the S&P 500 weight holdings by market capitalization, passive investors' exposure to Nvidia moves automatically with its share price.

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

Fiscal Q2 Earnings Beat

The company reported fiscal Q2 earnings on August 26. Adjusted EPS came in at $2.22, beating the $2.09 consensus, while revenue reached $96.22 billion, topping the $92.27 billion analysts had projected. Revenue rose 105.9% from the same quarter a year earlier, when Nvidia posted EPS of $1.05.

Data Center revenue, which covers Hyperscalers, AI Clouds, Industrial, and Enterprise, came in at $89 billion, ahead of the $85.8 billion estimate. Edge Computing, spanning physical AI and gaming, generated $7.2 billion against a $6.6 billion estimate.

Forward Guidance Stands Out

CEO Jensen Huang said the company expects roughly 70% revenue growth for fiscal year 2028, well above the 45% analysts had been forecasting. Huang added that growth could have exceeded 100% if not for memory chip supply shortages — a reminder that supply-chain constraints in the AI hardware stack, particularly high-bandwidth memory, remain a key variable in how fast AI infrastructure spending can translate into chip shipments.

Analysts moved quickly to update their targets. Benchmark set a $335 price target with a Buy rating. Morgan Stanley set a $300 target with an Overweight rating. Goldman Sachs reissued a Neutral rating and raised its target to $300 from $285. The average analyst price target stands at $324.23, with a "Moderate Buy" consensus.

Nvidia's board has also approved an $80 billion share buyback plan, and a quarterly dividend of $0.25 per share is set for October 1, with a record date of September 10.

Institutional Buying and Insider Selling

Institutional investors own 65.27% of NVDA. Several firms added to their positions in Q2: Aaron Wealth Advisors boosted its stake by more than 114%, adding 353,630 shares; Decker Retirement Planning raised its position by 32.3%; and Davis Capital Management lifted its stake by 22.4%.

ARK Invest purchased roughly $53 million of NVDA stock following the post-earnings dip, a move widely viewed as a vote of confidence from Cathie Wood's firm.

On the other side, insiders have sold approximately 1.4 million shares worth $299.3 million over the past 90 days. Director Mark A. Stevens sold 885,000 shares on June 18 at an average price of $210.17, reducing his stake by 14.53%.

Partnerships and Stock Metrics

Nvidia also announced a $3.5 billion investment in MediaTek, expanding their partnership across data center, edge computing, and automotive AI. Separately, Anthropic reportedly signed a $35 billion cloud agreement backed by Nvidia infrastructure — part of a broader pattern in which AI developers and cloud providers have committed to multibillion-dollar infrastructure deals with major chip and cloud suppliers.

The stock has traded in a 12-month range of $164.07 to $236.54, with a 50-day moving average of $208.33 and a 200-day moving average of $201.08.

Source: CoinCentral