Soaring NVIDIA Stock to Spur More Tech Investments

NVIDIA’s stock has nearly doubled since early April, trading near all-time highs on optimism tied to the AI boom.

Options traders are pricing in a move of more than 6% in either direction following NVIDIA's report on Wednesday evening. (Photo: Nvidia)

Its biggest customers — Microsoft Corp., Alphabet Inc., Amazon.com Inc., and Meta Platforms Inc. — have all pledged to increase capital spending in the months ahead, Bloomberg Weekend reported.

The stakes for markets are high. NVIDIA now holds a weighting of about 7.9% in the S&P 500 — higher than any other stock.

Options traders are pricing in a move of more than 6% in either direction following its report on Wednesday evening. In turn, traders expect about a 0.8% move in the S&P 500 on Aug. 28, according to Piper Sandler data as of Aug. 21.

That forecast is slightly larger than the 0.75% move predicted for Sept. 5 following U.S. payroll data, and the 0.72% swing expected after inflation data on Sept. 11.

Few events matter as much for markets as the words of the Fed chair, but with tech giants dominating the S&P 500 and AI as the dominant theme, an update from Nvidia is nearly as significant.