$TSLA the AI company (not a car company) -$1 pre-RTH https://t.co/xRt82RARs9
SoftBank shares hit record high on AI prospects https://t.co/5mxenY9Xxw https://t.co/5mxenY9Xxw
Nvidia is dominating the S&P 500 more than any company in at least 44 years https://t.co/f2aac8decQ (h/t Torsten Slok) https://t.co/VLmITvsrcI
A surge in artificial-intelligence leaders has driven U.S. equity concentration to levels not seen in nearly a century. Data compiled by Apollo Global Management show Nvidia now commands the largest individual weighting in the S&P 500 since records began in 1981, capping a rally that recently took the chip designer’s market value beyond US$4 trillion. The dominance of mega-caps means the biggest 10% of U.S. companies represent 76% of the nation’s stock-market capitalization, eclipsing peaks reached before the Great Depression and during the 2000 dot-com bubble. The U.S. market’s heft extends well beyond its own borders. American stocks account for 65% of the MSCI World Index and almost half of global equity value even though the United States hosts less than 5% of the planet’s population. Valuations are also stretched: technology shares trade around 27 times forward earnings and the broader growth cohort about 26 times—both near 20-year highs. Strategists attribute the concentration to outsized gains in a handful of AI beneficiaries, led by Nvidia, as passive investment flows amplify their influence in benchmark indices. While some research suggests index concentration alone is not a reliable predictor of future returns, the milestone is prompting renewed debate over market breadth and the risks investors face if sentiment toward the sector sours.
