Earnings from AI-heavyweight Nvidia to test U.S. stocks’ record run

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Its growing weighting in indexes and exchange-traded funds has given its share price moves an outsized influence

) on Wednesday are set to provide the latest test for a U.S. stock market rally that has taken indexes to record highs this year.

At the same time, Nvidia’s growing weighting in indexes and exchange-traded funds has given its share price moves an outsized influence over broader markets. The stock now has a weighting of over 5% in the S&P 500, while accounting for 6.5% of the Nasdaq 100 and 20% of the VanEck Semiconductor ETF ( Nvidia’s presence in AI means “what they report can have a pretty significant bearing on a perception of the major investment theme that’s out there right now,” said Chuck Carlson, chief executive officer at Horizon Investment Services. AI is “touching every single area, and the nexus of all that is Nvidia,” he said.

Nvidia, by contrast, was recently about 2% from its all-time intraday high ahead of its report. The company’s quarterly revenue is expected to roughly triple to $24.6 billion, according to LSEG. To be sure, Nvidia’s surging share price means the company must meet a high bar to support its stock. For example, some investors may be looking for the company to report particularly powerful revenue and project it to be robust going forward.

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