The Technology Titans Propelling the Success of the S&P 500 ETF

The S&P 500 Index has set yet another record high following the remarkable earnings performance by Nvidia Corp., sending waves of optimism rippling worldwide. The SPDR S&P 500 ETF Trust (SPY), mirroring the S&P 500 Index, has surged by 4.6% year-to-date, fueled by robust corporate earnings and the flourishing AI industry.

Within this buoyant market, five technology stocks have emerged as frontrunners, boasting double-digit gains and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). These tech giants are Nvidia, Meta Platforms, Uber Technologies, Advanced Micro Devices, and Applied Materials.

The tech sector’s solid performance has been a key driver in the recent acceleration of earnings and revenue growth, with the pace now rivaling that of quarters past. Notably, the current earnings growth rate is the most robust since the second quarter of 2022.

In a recent earnings revelation, Nvidia reported an astounding 265% surge in revenues, providing a bullish forecast signaling heightened demand for AI hardware. This not only underlined Nvidia’s dominance in the AI chip market but also heralded promising times ahead for the semiconductor landscape post-2025.

Concurrent with these developments are signs of a resilient economy, leading to a ‘risk-on’ trade atmosphere. Encouraging indicators such as strong retail sales, optimistic consumer sentiment, and a stabilizing producer price index hint at a potential soft landing by the Federal Reserve, steering inflation back to its target without invoking a recession.

As per the American Association of Individual Investors (AAII) Sentiment Survey, bullish sentiment has heightened, reaching 44.3%, surpassing historical averages for the 16th consecutive week.

Upon scrutinizing SPY’s underpinnings, the SPDR S&P 500 ETF Trust encompasses 503 stocks, each allotted a maximum of 7.2% of the total assets, fostering diversification and averting heavy concentration. With a broad sectoral spread encompassing technology, financials, healthcare, and consumer discretionary holdings, SPY boasts an AUM of $488.5 billion charging 9 bps yearly. Trading at an average volume of 66 million shares daily, the ETF carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

Below, we delve into the standout performers in the tech space within the ETF:

The Stellar Tech Securities of SPY

Nvidia, the global pioneer in visual computing technologies and GPU inventor, has surged by a whopping 58.6% this year, boasting a projected growth of 50.8% for the fiscal year ending January 2025.

Representing 4.5% of SPY’s assets, Nvidia currently holds a Zacks Rank #1 with a Growth Score of B.

Meta Platforms, the world’s largest social media platform, expanded its portfolio from the Facebook app to include Instagram and WhatsApp. The stock has soared by 37% in 2025 with an estimated earnings growth of 32.2% for the year.

Meta Platforms accounts for 2.5% of SPY assets and holds a Zacks Rank #1 (Buy) with a Growth Score of B.

Uber Technologies, the developer of proprietary technology applications, has seen a 26.7% rise this year, constituting 0.4% of the SPY portfolio.

With an expected earnings growth rate of 33.3% this year, Uber Technologies sports a Zacks Rank #2 and a Growth Score of A.

Advanced Micro Devices, known for its semiconductor market dominance, has leaped by 23.4% in 2025, forming 0.6% of SPY holdings.

Anticipating an earnings growth of 30.6% this year, Advanced Micro Devices holds a Zacks Rank #3.

Applied Materials, a key provider of equipment for semiconductor and solar cell fabrication, registered a 23% surge in 2025, representing 0.4% of SPY.