The SPDR S&P 500 ETF Trust
The Data: A post on X shared a Bank of America chart depicting the “Big 10” AI stocks as a percentage of the S&P 500’s total value.
AI-hype is stronger than ever:
The 10 largest AI-related stocks as a share of S&P 500’s market cap just hit a record 28%.
In just 18 months, or since ChatGPT was announced, this percentage has DOUBLED.
The biggest drivers have been Nvidia, Google, and Microsoft which areup… pic.twitter.com/RovJaHNPEE
The “AI Big 10”: The following companies comprise the so-called AI “Big 10.”
- Microsoft Corp
MSFT, 6.82% of the S&P 500. - NVIDIA Corp
NVDA, 6.73% of the S&P 500. - Alphabet Inc
GOOG GOOGL, 4.49% of the S&P 500. - Amazon.com Inc
AMZN, 3.92% of the S&P 500. - Meta Platforms Inc
META, 2.62% of the S&P 500. - Broadcom Inc
AVGO, 1.73% of the S&P 500. - Qualcomm Inc
QCOM, 0.52% of the S&P 500. - Advanced Micro Devices, Inc
AMD, 0.52% of the S&P 500. - Applied Materials, Inc
AMAT, 0.42% of the S&P 500. - Micron Technology Inc
MU, 0.35% of the S&P 500.
Why it Matters: The S&P 500’s sky-high performance amid tough macro conditions can largely be attributed to the proliferation of AI. On its own, NVIDIA’s eye-popping performance has accounted for around half of the S&P 500’s advance in 2024. In the meantime, other industries have struggled.
In recent months, other AI and AI-adjacent stocks have been added to the index. Super Micro Computer Inc was added to the S&P in March, while cybersecurity company CrowdStrike Holdings Inc will be added next week.
Also Read: Tesla Lags Behind Mag 7 — Will Master Plan 4 Spark A Comeback?
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Read More: 10 AI Stocks Now Comprise 28% Of The S&P, Up From 14% In 2023 — TradingView News