Nvidia hits all-time sales highs as the S&P 500 closes at a record high

The S&P 500 closed at a new all-time high on Wednesday, buoyed by huge anticipation around the results of Nvidia, the world's most valuable company, recognized for being the leading supplier of advanced AI processors. The index advanced 0.24% to 6,481.40 points, surpassing its previous high of Aug. 14. The Nasdaq, meanwhile, rose 0.21%, and the Dow Jones gained 0.32%.

According to The Wall Street Journal, enthusiasm around artificial intelligence has driven technology stocks to levels not seen in four years. According to data from the London Stock Exchange Group (LSEG), the S&P 500 is currently trading at 22 times expected earnings, representing a price-to-earnings ratio that reflects both optimism and caution among analysts following warnings from OpenAI's Sam Altman, who said there is a risk of a possible "bubble" in the sector.

Against this backdrop of record highs and cautious optimism, Nvidia reported quarterly revenue of $46.7 billion, a direct increase of 56% versus the same period in 2024. This generated net income at $26.4 billion, up 59% from a year ago. Now, for the third quarter of 2025, the company forecasts sales of $54 billion, just above Wall Street's projections.

In turn, the data center business, which accounts for nearly 90% of Nvidia's revenue, also grew 56% to $41.1 billion. Despite the successful growth, this number fell slightly short of analysts' expectations ($41.3 billion). The difference had a direct impact on post-closing operations, producing a drop of more than 2%. This is partly the result of a second consecutive quarter in which the division fell short of forecasts, driven by weaker sales in China.

Nvidia's relationship with the Chinese market continues to be marked by uncertainty. In April, the Trump Administration banned the sale of H20 chips designed to comply with export restrictions. In August, following an agreement giving the U.S. government 15% of revenue from chip sales in China, operations were allowed to resume. However, the company sold no new H20s in the quarter and projects zero revenue from that product in the coming months.

When one door closes, a window opens: the new Blackwell processor line showed a 17% increase over the previous quarter, with customers such as Disney, Hitachi, Hyundai, and SAP leading the purchases. Nvidia also authorized $60 billion in share repurchases, bolstering confidence in its future performance.

Weighing in at nearly 8% of the S&P 500, Nvidia's performance remains a key determinant for millions of Americans who invest in index funds for savings and retirement.