Right. So, the market. It’s all a bit…much, isn’t it? One minute it’s tech, the next it’s…oil? Honestly, keeping up feels like a full-time job. And a rather stressful one at that. Apparently, energy stocks are having a moment. Up 24.2% year-to-date, which, let’s be honest, is a bit startling. I was just starting to feel comfortable with my tech weighting. The S&P 500, meanwhile, is plodding along at a measly 0.5%. Plodding. The indignity.
And here’s the really baffling bit. Nvidia. Just Nvidia. It’s worth more than ExxonMobil, Chevron, and the other twenty-odd energy companies that make up the S&P 500. Combined. It feels…wrong. Like a glitch in the Matrix. I mean, oil is, you know, real. It powers things. Nvidia makes…chips. Very clever chips, admittedly, but still. I keep expecting someone to point out the absurdity of it all.
Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24.
So, why does Nvidia deserve such a hefty chunk of the market? Well, the numbers speak for themselves, of course. It’s all about earnings. A staggering $120 billion in trailing twelve-month profit. Second only to Alphabet. Which, let’s face it, is a pretty good company to be second to. Exxon and Chevron combined barely scratch the surface. It’s a bit like comparing a yacht to a…well, a slightly smaller yacht.
And it’s not just about the profit, it’s about the margins. Nvidia is converting over half its revenue into actual, usable profit. Oil companies can only dream of that. They’re constantly at the mercy of fluctuating prices, geopolitical crises, and the general unpredictability of the world. Nvidia just…makes chips. And people buy them. It’s almost…elegant.
I keep telling myself I should be a disciplined, long-term investor. Focus on value. Diversify. But then I see Nvidia’s revenue up 65% over the past year, and my resolve crumbles. Its forward P/E ratio is lower than its trailing P/E, lower than ExxonMobil, lower than Chevron, lower than the S&P 500. It’s almost too good to be true. Which, naturally, makes me deeply suspicious.
Of course, there are caveats. Earnings expectations are just that – expectations. Oil prices could rise, boosting energy company profits. Companies could pull back on AI spending, denting Nvidia’s numbers. But honestly, I’m betting on AI. It feels…inevitable. Like trying to stop the tide with a teaspoon.
The whole energy versus Nvidia situation illustrates a rather unsettling truth: two contradictory things can be true at the same time. Energy stocks are arguably undervalued. They were cheap going into the year. But Nvidia’s stock has barely moved in seven months, bringing its valuation down. It’s all a bit dizzying, isn’t it?
I’ve noticed a definite shift in the market. It used to be all about growth stocks like Nvidia powering the S&P 500. Now it’s sectors with “hard assets” – energy, materials, consumer staples – that are doing the heavy lifting. Apparently, investors are gravitating towards things that are…real. Like oil. Which feels strangely comforting. Like a return to sanity.
I’m trying to avoid the temptation to jump in and out of sectors based on what’s hot or not. It feels…frivolous. Instead, I’m focusing on building a portfolio around companies that are built to last. ExxonMobil and Chevron fit the bill. They can still cover their costs, invest in the future, pay dividends, and buy back shares even if oil prices fall. Solid, dependable. Like a good pair of shoes.
And the dividends! ExxonMobil has boosted its payout for 43 consecutive years, yielding 2.7%. Chevron has increased its payout for 39 consecutive years, yielding 3.8%. It’s enough to make a girl feel…secure. Almost.
So, energy stocks remain a compelling value for those who believe in sustained demand for oil and gas, even as cleaner alternatives become more popular. Nvidia is a fantastic buy if you think it can continue to lead the way in generative AI and the exciting world of agentic and physical AI. Now, if you’ll excuse me, I need to lie down. And maybe have a cup of tea. And definitely avoid checking my portfolio for at least an hour.
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2026-03-08 04:52