What happens with Nvidia matters for the entire U.S. stock market. The chip company has grown into the second-largest company on Wall Street, which means the stock’s movement carries more weight on the S&P 500 and other indexes than every company except Apple. The tech giant, based in Santa Clara, California, is now worth over $3 trillion.

Nvidia forecast first-quarter revenue above market estimates on Wednesday, expecting robust demand for its leading AI chips to persist as businesses spend heavily to expand generative artificial intelligence infrastructure.

Nvidia has managed to exceed lofty expectations yet again, with the chip behemoth’s fourth-quarter results beating Wall Street’s forecasts as management also offered bullish guidance. Nvidia earnings are a bellwether for the entire gen AI trade.

Nvidia (NVDA) reported fiscal fourth-quarter earnings that exceeded analysts' expectations, as demand for artificial intelligence powered sales to a fresh high. The chipmaker posted record quarterly revenue of $39.