\n The stock market rally \u2014 \ufeffthat had been going practically nonstop since April until this month\u2019s blip \u2014 largely depends on Nvidia. The chipmaker, which is the gold standard for AI computing power, has propelled the market higher across the past three years.\n <\/p>\n
\n Investors are now eager to know whether demand for Nvidia\u2019s chips \u2014 and its optimism about the future \u2014 are continuing to grow or if there are signs of AI fatigue.\n <\/p>\n
\n Less-than-stellar earnings this month from tech company Palantir (PLTR<\/a>), which uses AI for its government contracts, gave Wall Street pause \u2014 and fueled a sell-off in AI stocks<\/a> over the past several weeks. Nvidia\u2019s stock (NVDA<\/a>) has fallen more than 10% this month, although it\u2019s still up 35% this year.\n <\/p>\n \n \u201dThe market for the first time is questioning whether the hype will turn into reality,\u201d Bob Elliott, CIO at asset management firm Unlimited Funds, told CNN.\n <\/p>\n \n Nvidia\u2019s chips power part of practically every major AI venture, meaning investors will scrutinize its earnings as well as chief executive Jensen Huang\u2019s remarks.\n <\/p>\n \n \u201cNvidia takes on even greater weight than normal,\u201d Elliott said. \u201cIf it doesn\u2019t confirm high expectations built into the market, then watch out below.\u201d\n <\/p>\n \n Every investor should care about Nvidia\u2019s earnings this afternoon: Nvidia accounts for roughly 8% of the S&P 500, which is weighted by market value. That means investors \u2014 and those with 401(k)s \u2014 are increasingly exposed to the company\u2019s strong gains. Similarly, they are more exposed to a drop in Nvidia\u2019s stock price.\n <\/p>\n![\"Nvidia](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/2025-05-19t055935z-261102458-rc2tkeaee5uc-rtrmadp-3-taiwan-computex-nvidia.JPG\")
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