Nvidia just hit a massive milestone: a $4 trillion market value—more than any company in history. Its stock has soared over 1,000% since 2023, powered by booming demand for its AI chips from tech titans like Microsoft and Amazon.
But some market watchers are raising red flags. Nvidia now makes up 7.5% of the entire S&P 500, and that kind of dominance can create serious risks if sentiment turns. While analysts say the stock is still reasonably priced given its earnings growth, the broader market looks increasingly reliant on just a few high-flying names—an imbalance that could spark trouble if momentum fades.
As the earnings season approaches, all eyes are on whether Nvidia can continue to justify its sky-high valuation—or if this is another sign of a market priced for perfection.