Nvidia’s earnings have become one of Wall Street’s biggest events. Here’s why

For the past few weeks, investors have been laser focused on the Federal Reserve. Now, they’re directing their attention to this $3 trillion artificial intelligence gem.

For the past few weeks, investors have been laser focused on the Federal Reserve. Now, they’re directing their attention to this $3 trillion artificial intelligence gem. Nvidia, the AI chipmaker whose stock has helped power the market’s feverish rally this year, reports quarterly earnings after the close. Shares of Nvidia, though down 2% on Wednesday morning, are up a dizzying 154% this year thanks to the AI frenzy. More than that, shares of Nvidia have surged about 3,000% over the past five years. That means anyone who invested $100,000 in the stock back then — when it was little known to many people — would now have roughly $3 million. The company’s market value is now over $3 trillion, one of only three US companies ever to achieve that milestone. Nvidia’s outsized roughly 7% weighting in the S&P 500 means that large swings in the stock can have a sizeable impact on the broader market. The chipmaker’s stock has averaged an 8.1% one-day swing in either direction in reaction to earnings, according to Bespoke Investment Group. That has translated to an average 0.5% move in the overall benchmark index. The company’s “earnings report has become the world’s most important financial news event. Federal Reserve officials must be getting nervous,” wrote Bespoke in a Wednesday note.