Nvidia earnings confirm AI’s dominance as markets sit at record highs

Nvidia has reported stronger-than-expected earnings and revenues, with sales guidance of $54 billion for the current quarter, reinforcing that artificial intelligence demand is driving an unprecedented expansion of infrastructure

This latest confirmation cements AI as the most powerful force shaping global markets, says global financial advisory giant deVere Group.

The results landed as the S&P 500 sits at an all-time high, after closing up more than 0.2% on Tuesday. The Dow Jones Industrial Average rose nearly 0.4% and the Nasdaq Composite advanced 0.2%, with traders positioning ahead of the earnings release.

With the numbers now in, deVere expects their impact to impact benchmarks worldwide.

Nigel Green, CEO of deVere Group, comments: “Nvidia has once again delivered beyond expectations.

“The scale of its influence on markets is without precedent for a single company. It now makes up almost 8% of the S&P 500 by market cap, meaning a beat can lift the entire benchmark.

“But this isn;t just about one stock — it is about the global economy being rebuilt around AI.”

The company’s data center division remains the engine of growth, powering language models, enterprise AI adoption, and cloud computing capacity.

Last quarter, Nvidia more than tripled year-on-year revenue, with data center sales surging over 400%. The latest results show that momentum has not slowed.

Nigel Green continues: “Investors must see beyond the headlines. Nvidia is the most visible player, but the AI ecosystem is vast.

“Chip designers, manufacturers, software developers, data infrastructure, cybersecurity, and even energy producers are all critical to the story.

“The demand for electricity alone is set to more than double global data center consumption by 2030. This creates risks, but it also generates opportunity across energy and utilities.”

Geopolitics remains an undercurrent. Washington and Beijing continue to spar over access to high-performance chips, including Nvidia’s H20 series.

Markets are sensitive to these developments, yet deVere stresses they highlight rather than diminish the strategic importance of AI supply chains.

“Nobody can afford disruption,” notes the deVere CEO.

“The rivalry makes AI even more vital. It proves that semiconductors and advanced computing are now seen as national security assets as well as commercial ones.

“This ensures that governments and companies alike will keep investing, regardless of short-term volatility.”

While some analysts caution that AI enthusiasm may resemble a bubble, deVere believes the comparison might be currently flawed.

Nigel Green explains: “This is not speculation detached from fundamentals. We’re witnessing a structural investment wave.

“Capital is being deployed into the infrastructure of the future economy, not into hollow promises. The spending is real, the applications are multiplying, and the productivity potential is enormous.”

Technology now accounts for nearly 30% of the S&P 500, with Nvidia, Apple, and Microsoft alone representing more than 15%. Nvidia’s rally contributed more than a quarter of the index’s gains in 2024, showing how concentrated the impact has become.

The deVere CEO concludes: “Nvidia’s latest results will be read as confirmation that AI is the catalyst of this market cycle.

“Benchmarks are at record highs because investors recognise the structural shift underway. The next phase will likely reward those who look beyond the mega-cap names to the broader ecosystem where the next leaders will emerge.”