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Nvidia Corp, already a $4.3 trillion giant that has doubled in value in just 16 months and looms larger than the stock markets of the U.K., China and Canada, could soon eclipse the entire Rs 5.21 trillion Indian equity market if its shares reach Cantor Fitzgerald’s new $240 price target.Fueled by its dominance in artificial intelligence (AI) chips, Nvidia last month became the first company to cross $4 trillion in market capitalization. Its market value is now only about $1 trillion below Japan’s Nikkei 225 index, the world’s second-largest stock market after the United States. The company also accounts for 4.94% of the MSCI All Country World Index, nearly matching Japan’s 4.97% share.Analysts turn even more bullishCantor Fitzgerald lifted its Nvidia target to $240 from $200 on August 18, writing that “China is already de-risked in Street models, and the goal here is to get China to build on NVDA’s platform. Any progress here should be well-received,” according to Bloomberg. Other brokerages including Wedbush, KeyBanc, UBS, Morgan Stanley and Susquehanna have also raised their targets this month. Nearly 90% of analysts covering Nvidia rate it a buy-equivalent, Bloomberg data showed.UBS, for its part, reiterated its buy rating last week and boosted its price target to $205 from $175, noting it is growing more bullish on the stock ahead of earnings, CNBC reported.The AI bellwetherNvidia shares have surged more than 30% this year, extending their gain to over 1,400% since October 2022. Its weight in the S&P 500 Index is now close to 8%, cementing its status as a bellwether for both the technology sector and the broader U.S. market. About 40% of its revenue comes from Microsoft, Alphabet, Meta and Amazon, all of which are among the index’s biggest constituents.The stock rose 1.7% on August 22, snapping a three-day losing streak and moving to within 3% of a record high set earlier this month. But with expectations running high, analysts caution that even a modest miss on results could spark a selloff that reverberates across markets.Earnings in focusNvidia reports fiscal second-quarter results on August 27, closing out an earnings season in the U.S. that has generally exceeded forecasts. Wall Street expects adjusted earnings of $1.01 per share, up 48% from a year earlier, on revenue of more than $46 billion, a 54% jump, according to Bloomberg and LSEG data.The report comes at a delicate moment for markets. Federal Reserve Chair Jerome Powell’s signal that rate cuts are coming lifted equities last week after a stretch of weakness, but investors now want confirmation that AI spending can sustain the rally. Any commentary from Nvidia on demand or capital spending, particularly in relation to China, will be parsed closely.As the world’s most valuable chipmaker, Nvidia’s outlook could decide whether the latest market surge endures, or whether sky-high expectations finally catch up to Wall Street’s favourite stock.Also read | Jensen Huang richer by another $28 billion this year amid Nvidia's $4 trillion feat(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Shares of leading IT companies, Tata Consultancy Services (TCS) and Infosys, surged over 3% each on Monday after brokerages turned bullish. Investec upgraded Infosys to ‘Buy’ with a target of Rs 1,655, while JP Morgan raised TCS to ‘Overweight’ and hiked its target price to Rs 3,800 from Rs 3,650, according to a CNBC-TV18 report.TCS has lagged broader markets in recent years, with its trailing price-to-earnings multiple halving from 41x to 20x. Over the past five years, the company has posted a profit CAGR of 8.5% but its stock CAGR was only 6%.TCS fell by over 20% this year, but JPMorgan expects a recovery in the business from the second half of the financial year 2026.The long-term story of the IT sector remains intact. Indian IT has compounded at 12.5% annually over the past two decades, though it underperformed the Nifty in the last three to five years.Q1 Earnings SnapshotTCS reported a 6% rise in Q1FY26 consolidated net profit at Rs 12,760 crore versus Rs 12,040 crore last year. Revenue from operations grew 1.3% year-on-year to Rs 63,437 crore.The quarter was also marked by a robust Order Book and operational resilience. The Q1 Total Contract Value (TCV) stood at $9.4 billion.TCS, meanwhile, is confident of navigating the challenges impacting its business through cost optimisation, vendor consolidation and AI-led business transformation.Infosys, meanwhile, raised the lower end of its FY26 revenue guidance from 0–3% to 1–3%.Choice Equities noted that while demand remains subdued due to tariffs and geopolitical headwinds, interest in AI-led transformation and cost-efficiency initiatives could fuel stronger growth in the second half of FY26.Also read: Vodafone Idea shares rally over 10% in 2 days amid AGR relief buzzChoice has also upgraded Infosys to Buy with a target price of Rs 1,810, projecting revenue, EBIT and PAT CAGRs of 7.4%, 11.0% and 10.7% respectively over FY25–28.