Nvidia’s Market Cap Surpasses Entire Global Crypto Market

In the same way Apple symbolised the smartphone era, Nvidia now defines the AI era. The stock has become the heartbeat of the market, making up around 8% of the S&P500 weight, the single largest in history. Its market cap now eclipses the entire FTSE 100 and the ASX200 combined, and is even larger than the entire global crypto market, underscoring just how outsized its role has become in global markets. That scale underlines why its earnings dates are fast becoming just as vital to investors as economic and central bank data. Regardless of whether you own Nvidia shares or not, its result will impact your portfolio in some way.

According to Josh Gilbert, Market Analyst at eToro, Nvidia’s last earnings in May solidified its position with continued growth, margins most businesses would envy, and a war chest that gives the company the firepower to keep innovating. Demand remains robust, and while there are some bumps in the road due to US tariffs, issues with the Chinese government and a short-term halt on H20 chip production, confidence in the company persists. Though the H20 chip halt will come with short-term uncertainty, demand from US hyperscalers and adoption of its Blackwell chips will likely offset weakness in China.

Profit margins will be a focal point this week, after dipping slightly due to the Blackwell build-out. Last quarter’s heavy investment in ramping up next-gen chips trimmed gross margins by a few percentage points, but with adoption growing, margins are set to rise again.

In the current quarter, US mega caps have ramped up capital expenditure on AI following another round of strong results, and much of that investment is set to flow straight to Nvidia. That bodes well not only for this week’s earnings, but also for the company’s outlook in the quarters ahead. It’s in a highly enviable position as the go-to hardware manufacturer, and that’s not likely to change anytime soon. Even with the stock trading at a premium valuation, investors continue to pay up on the expectation that Nvidia will keep delivering on AI growth. The market is expecting EPS of USD$1.01 (48% YoY) on revenue of USD$46.1 billion (54% YoY).

Nvidia may be the market’s heartbeat, but that comes with the expectation of perfection, meaning even the smallest disappointment could spark outsized volatility across broader markets, not just Nvidia shares. But investors will likely see weakness as an opportunity, given the AI boom feels like it's only just getting started.