Corporate earnings continue to be front-of-mind. Nvidia Corporation (NVDA) was the most recent example, beating expectations with revenue and earnings-per-share coming in better than consensus.
NVDA was up +30% pre-market this morning, so much that it is on track to exceed $1 trillion in market capitalization.
This would put NVDA in a unique club of companies whose market cap exceeds $1 trillion, joining Apple Inc. (AAPL), Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN).
The year-to-date (YTD) return for NVDA also highlights the thin breadth of companies driving YTD performance of major equity indexes.
Per FactSet, NVDA has risen +108.9% YTD, modestly exceeding the +107.1% YTD advance of Meta Platforms Inc. Class A (META; formerly Facebook). These outsized gains have heightened the attribution of YTD returns of other mega- market cap companies like AAPL (+32.3%), MSFT (+30.9%) and AMZN (+39.0%).
The top 10 companies of the Russell 3000, based on market capitalization, represent 25% of the total index market cap. When considering the performance of these companies, eight exhibit YTD returns that exceed 30%.
Note the Russell 3000 has increased 7.3% YTD; the median YTD constituent return within this index is -3.2%.