‍

Blake, Wm. The Goddess of Fortune. 1824.

‍

The “Magnificent Seven” tech companies—Apple, Amazon, Alphabet, NVIDIA, Meta, Microsoft, and Tesla— have collectively soared about 75% this year, far outpacing the broader market.

These companies now hold a staggering 33% of the S&P 500 index, up from 12% for the other 493 companies in the index.

The spectacular growth is largely attributed to the frenzy surrounding AI, with NVIDIA, a leading supplier of computer chips for AI, seeing a sharp rise of nearly 250% this year.

As of today, Apple makes up over 8% of the S&P 500, having reached a $3 trillion valuation in June.

Concerns are growing over the S&P 500 tilting too heavily toward these seven stocks. “It's a mind-blowing number to me when I think about an index that's supposed to represent such a broad group of companies,” said Ann Miletti of Allspring Global Investments.