The five biggest stocks on the S&P 500 are now worth nearly $9 trillion – or almost 25% of the benchmark index.
Those companies include Apple, Microsoft, Alphabet, Amazon, and Nvidia.
Tech stocks have staged an impressive rally this year as hype around AI lifts industry stocks.
The five biggest S&P 500 companies have a combined market capitalization worth nearly $9 trillion – or almost 25% of the benchmark index.
The top companies include tech giants Apple, Microsoft, Alphabet, Amazon and Nvidia, TheBoomBust.com first reported on Twitter.
Tech stocks have had a smashing start to the year thanks to the hype around artificial intelligence, following the launch of OpenAI’s ChatGPT.
Excitement around AI has not only seen a tech war breakout among industry giants including Microsoft, Alphabet and Meta to lead the AI boom, but also a flurry of investors parking their money in stocks best able to take advantage of the AI revolution.
Nvidia has specifically enjoyed the ride to the top, with the Santa Clara-based chipmaker’s stock surging 116.55% since the start of 2023, making it the best-performing stock of the year on the S&P 500. The company has a market cap of $773 billion.
Investors see Nvidia as well-positioned to take advantage of the AI boom, given its the No.1 producer of graphic chips needed for high-intensity computing.
With AI in the limelight, it’s drawn a pool of both bulls and bears. While billionaire investor Paul Tudor Jones said the technology could spur a productivity boom, Bank of America’s top strategist has warned of trouble ahead for the tech sector.
In a recent interview on CNBC, BofA’s Savita Subramanian said investors should shun mega-cap tech stocks as a “big asset bubble” is building in growth shares.
“You don’t want to buy mega-cap tech. That’s old leadership,” Subramanian said, adding that tech is showing its cyclicality in today’s environment.
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