Tom Lee Calls Nvidia's (NVDA) 8.74% Earnings-Day Jump a Market Health Signal

Tom Lee's Pattern Call

Fundstrat's Tom Lee argues Nvidia (NVDA) just did what it almost never does — rise on good earnings. The chipmaker's shares surged 8.74% on August 27 after a record quarter in which revenue hit an all-time high of $96.2 billion, up 106% year-over-year, alongside guidance of $108 billion for the current period. The stock went into the print cold: seven consecutive down sessions between August 14 and August 24 ground the price from $225.30 to $208.48, a slide consistent with the longest losing streak since 2022. The post-earnings reversal then carried shares to $227.98, adding roughly $440 billion in market value in a single day — a move Lee frames as proof the broader market is healthy. His reasoning rests on valuation: Nvidia trades at 27.5 times trailing earnings but only 18 times forward estimates, so analyst revisions are outpacing the share price and compressing the multiple. “The thing that stands out is Nvidia's multiple is still very low... Now the PE keeps contracting,” Lee said on CNBC. He also sees a funding mechanic behind the muted response across the rest of the AI trade — investors underweight the chipmaker had to sell other positions to buy it, a scramble that edges toward FOMO behavior. Software moved independently: Salesforce climbed 22.58% on its own results, one of several stocks that outgained Nvidia that day. Not everyone is convinced. Jay Goldberg of Seaport Research Partners, the only analyst carrying a sell rating, argues sold-out supply caps the upside because Nvidia cannot ship chips it has already promised. Lee flagged one further risk: opposition to new data centers is turning into a US election issue, with some Republican governors now backing a pause — a shift captured in a PBS News update on the midterm landscape. The breakout proved short-lived, though: the stock fell 4.57% on Friday to $217.55, erasing roughly $250 billion of the gain.

PBS News updatehttps://x.com/NewsHour/status/2093140761722196263?ref_src=twsrc%5Etfw

S&P 500 Concentration

Wall Street's Q2 earnings season delivered a stark lesson in concentration. Between July 13 and August 29, the combined market capitalization of S&P 500 companies expanded by $1.75 trillion, and roughly 79% of that gain came from the technology sector, per figures shared by market-analysis service The Kobeissi Letter. Microsoft and Nvidia were the decisive pair: their combined market-cap increase of $1.42 trillion exceeded the technology sector's entire net gain of $1.39 trillion, meaning the two mega caps single-handedly offset losses elsewhere in the group. The remaining 71 technology names shed $22.3 billion collectively — a dispersion dynamic more familiar to observers of decentralized finance (DeFi), where a handful of assets routinely drive headline market moves. Beyond technology, the season split sharply. Healthcare ranked second with a $345.2 billion gain, followed by financials at $192.7 billion and energy at $174.7 billion. Communication services suffered the heaviest losses at $299.6 billion, with utilities down $88.5 billion and industrials down $67.3 billion. The pattern shows a strong index level is not the same as broad participation: the S&P 500's advance is increasingly dependent on a shrinking cluster of high-market-cap names, much as Bitcoin's dominance shapes crypto market behavior. For Nvidia specifically, expectations around AI infrastructure, data centers and high-performance chips remain the core drivers of investor attention — the same themes behind its record $96.2B quarter — and its weight inside the index means single-stock swings now transmit directly to broad-market performance. Whether gains spread to a wider group of companies is emerging as the key signal for a sustainable Wall Street rally. Readers tracking the market in real time can follow live spot and futures prices on Gate.

The Kobeissi Letterhttps://x.com/KobeissiLetter/status/2093736086266687989

$212.50 Support in Focus

COINOTAG's proprietary 42-indicator composite S/R scoring engine places the stock at $218.75, down 0.26% over the past 24 hours, in a sideways trend with RSI at 51.97 and a bearish MACD signal. Our engine rates the $212.50 support at 76/100 — the strongest level on the board, driven by S2, VWAP, the Bollinger lower band and the 0.500 Fibonacci retracement — while the $218.05 shelf scores 70/100 on a Fibo 0.618 and Ichimoku Tenkan/Kijun confluence. Overhead, $223.10 resistance carries a 67/100 score from Fibo 0.786, the ATR upper band, R1 and the POC, with $227.46 next at 65/100. Derivatives positioning is neutral: funding sits at 0.0000% and aggregate open interest near $8.98 million, while the Fear & Greed Index reads 68 (Greed). Holding above $212.50 keeps the consolidation intact; a daily close below it would invalidate the range thesis and expose the moderate $207.73 support.