August 31st Stock Market Report: Nvidia Enters $5.5 Trillion Era
Nvidia Solidifies Dominance, Entering the $5.5 Trillion Market Cap Era
As of August 28, 2026, US market time, Nvidia stood firm as the global leader in market capitalization, closing at $227.98, a 0.09% increase from the previous day. Its market cap reached an astounding $5.51 trillion, boasting a Price-to-Earnings (P/E) ratio of 28.8 and a breathtaking Earnings Per Share (EPS) growth rate of 6599.3%. While Benjamin Franklin famously argued that the Constitution only grants the right to pursue happiness, leaving its attainment to individuals, it appears that in today's capital markets, generating profit is now exclusively reserved for companies with an insurmountable technological moat. Led by Nvidia, the artificial intelligence (AI) semiconductor sector, despite hovering around the breakeven point, maintained a slight upward trend, providing a floor for the market.
Big Tech Market Cap Top Performers and Data Analysis
With the overall market trading in a narrow range, the divergence in performance and valuation among individual stocks became more pronounced. Major players in the top market cap tier, such as Microsoft, Tesla, and Palantir, saw modest gains, while Amazon and Meta experienced slight declines, resulting in mixed performance. Below is key data for major companies as of the closing bell on August 28, 2026.
| Stock Name | Current Price (KRW) | Change (%) | Market Cap (Trillion KRW) | P/E Ratio | EPS Growth Rate |
|---|---|---|---|---|---|
| Nvidia | 227.98 | +0.09% | 5.51 | 28.8 | 6599.3% |
| Apple | 314.58 | 0.00% | 4.59 | 36.1 | 2258.6% |
| Alphabet (GOOGL) | 340.65 | -0.00% | 4.17 | 17.1 | 3419.4% |
| Microsoft | 505.06 | +0.02% | 3.75 | 27.6 | 3138.7% |
| Amazon | 256.26 | -0.02% | 2.76 | 20.6 | 2879.9% |
| Tesla | 354.81 | +0.03% | 1.40 | 334.7 | -4709.0% |
| Palantir | 185.93 | +0.05% | 0.45 | 151.2 | 22857.1% |
| Intel | 92.09 | +0.04% | 0.49 | - | 9865.5% |
Analyzing the data, Nvidia's market cap widened the gap to nearly 1 trillion won against the second-ranked Apple ($4.59 trillion), demonstrating its market dominance. Notably, Palantir, trading at $185.93 and up 0.05%, showcased an EPS growth rate of 22857.1%, proving that demand for AI software is translating into tangible profits. Conversely, Tesla, despite a high valuation of 334.7 times P/E, faces the challenge of improving profitability with an EPS growth rate of -4709.0%, indicating a contraction. Alphabet remains the most undervalued among the top market cap stocks at a P/E of 17.1, but its share price stayed at $340.65 with little change from the previous day.
Growth Momentum Spreads from AI Hardware to Software
The simultaneous rise of Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) suggests that the demand for AI computing power remains robust. TSMC traded at $427.3, up 0.02%, maintaining a solid performance with a P/E ratio of 31.8. Broadcom also rose 0.04% to $371.54, reflecting the expansion of the network semiconductor market. While Elon Musk commented that civilization must remain stable to sustain current technological levels, the financial markets conversely view rapid technological advancements as the sole driving force to break through existing industrial limitations.
In the software sector, Palantir's explosive EPS growth rate has captured market attention. Coupled with the appointment of Ha Jeong-woo, Vice Chairman of the National AI Strategy Committee, to oversee AI future planning, the adoption of AI data analysis tools in both public and private sectors is expected to accelerate. Oracle also benefited from cloud infrastructure expansion, trading up 0.02% at $151.94. However, the slight declines in Meta (-0.01%) and Amazon (-0.02%) are interpreted as the market beginning to factor in the burden of massive infrastructure investment costs on short-term profitability.
Domestic Semiconductor and Energy Sectors Face Joint Decline Amid Policy Variables
In contrast to the stable performance of US big tech, the South Korean stock market on August 31 experienced a sharp correction, particularly in the semiconductor equipment and energy sectors. According to Naver Pay Securities, Hanmi Semiconductor fell as much as 4.55% from the previous day, reaching a low of 209,500 won intraday. This appears to be linked to Micron's stagnant performance in the US market, failing to gain further upward momentum. The nuclear power sector also saw significant drops, with Han-Kuk Nuclear Energy (-7.92%), Doosan Enerbility (-6.80%), and Woori Technologies (-7.11%) leading the decline. This is attributed to a combination of short-term profit-taking and policy uncertainty, arising as power supply issues emerge as a key challenge in the government's mega-project initiatives.
Political shifts are also impacting investor sentiment. Lee So-young, nominated as the Minister of SMEs and Startups, was a key figure in drafting the original 'Stock Price Suppression Prevention Act.' The market is wary of where the policy balance will eventually settle between deregulation and tightening of capital market regulations. The appointment of Lee Won-joo, who will oversee energy transition policies as Presidential Office's Mega Project Advisor, is positive for the expansion of power infrastructure. However, the downward trend in major large-cap stocks like Samsung Biologics (-0.13%) and Ecopro BM (-2.88%) is increasing downward pressure on the overall index.
Need for Portfolio Realignment Amid AI Stock Selectivity
Moving forward, the market is expected to react sensitively to concrete profit growth figures rather than mere expectations. Nvidia's P/E ratio of 28.8 has normalized from its rapid ascent phase, but stocks like Tesla and Palantir, with P/E ratios exceeding triple digits, face the risk of increased volatility if they fail to demonstrate EPS growth in future earnings reports. Broadcom (P/E 61.7) and Advanced Micro Devices (P/E 121.9) have also entered a phase where they must prove their technological competitive advantage through their stock performance.
Connectivity through technology can sometimes create a false sense of intimacy, but technological figures in the capital market speak the most unvarnished truth.
Apple and Alphabet are beginning to exhibit defensive characteristics, maintaining relatively stable P/E ratios (36.1 and 17.1, respectively). Investors must adjust the weighting between earnings stocks like Nvidia, which has achieved over 6000% EPS growth, and high P/E stocks where future value has already been priced in. The slight rise of Intel, trading at $92.09, up 0.04%, showing signs of recovery, provides a reason to watch for the potential return of traditional semiconductor giants. In the domestic market, given the significant volatility driven by policy themes, a strategy of diversifying risk into large-cap, fundamentally sound stocks is expected to be effective.
