The S&P 500 has reached a new all-time high of 5,800, but a closer look reveals that AI-related stocks account for nearly 90% of the index's gains this year, raising concentration concerns.
The AI Seven
- Nvidia: +45% YTD
- Microsoft: +28% YTD
- Apple: +22% YTD
- Alphabet: +30% YTD
- Amazon: +35% YTD
- Meta: +25% YTD
- Broadcom: +55% YTD
Concentration Risk
The equal-weight S&P 500 is actually flat for the year, meaning the average stock hasn't gained at all. This extreme concentration mirrors the dot-com era and has some analysts warning about vulnerability to a tech correction.
