At some point, the line between “the market went up” and “Nvidia went up” started to blur. On September 2, Nvidia shares climbed nearly 4% during afternoon trading, closing up 2.50% at $190.04, and the broader indexes dutifully followed: the S&P 500 gained 0.47%, the Nasdaq added 0.90%, and the Dow Jones ticked to a new all-time high with a 0.04% advance.
The catalyst was a rally across chip stocks, itself sparked by strong quarterly results from Dell Technologies, whose server and AI infrastructure numbers signaled that corporate demand for AI hardware is nowhere close to cooling off.
One stock, outsized consequences
Nvidia now carries roughly an 8% weighting in the S&P 500. That number sounds abstract until you do the math: on many trading days, Nvidia’s price movement alone accounts for more than half of the index’s total swing in either direction.
This concentration dynamic intensified dramatically after Nvidia’s fiscal Q2 earnings report on August 27. The results were strong enough that shares jumped 8.7% in a single session, adding $442 billion in market value overnight. That was the second-largest single-day market cap gain ever recorded for any company anywhere.
At roughly $5.5 trillion in total market capitalization following that earnings pop, Nvidia is now the largest publicly traded company in the world by a significant margin.
The ‘golden age’ thesis and what it means for markets
On the earnings call, CEO Jensen Huang described the current moment as a “golden age” for AI, projecting robust growth through at least fiscal year 2028.
Nvidia’s revenue is dominated by its data center segment, where the company supplies the GPU clusters that train and run large AI models. The Blackwell architecture chips, Nvidia’s current flagship line, have faced supply constraints that Nvidia has indicated are gradually easing.
Geopolitical risk, which has loomed over Nvidia’s export prospects given US restrictions on advanced chip sales to China, had minimal visible impact on September 2 trading.
Fund managers tracking index benchmarks have no choice but to hold Nvidia in proportion to its weight. As Nvidia’s market cap grows, its index weight grows with it, which forces more passive buying, which pushes the price higher, which increases the weight further.
The broader chip sector moved in sympathy with Nvidia on September 2, suggesting that investors view Dell’s results as a rising-tide signal rather than a company-specific win.