Energy Sector Gains Amid Tech Declines
As of October 2026, the energy sector has risen by 24.2% year-to-date, driven by increasing oil prices and tensions in Iran, while the S&P 500 has experienced minimal growth at just 0.5%. Notably, energy stocks comprise only 3.5% of the S&P 500, contrasting sharply with Nvidia, which accounts for 6.9% alone, indicating Nvidia’s market value exceeds that of major energy companies like ExxonMobil and Chevron combined.
Nvidia reported a trailing-12-month profit of $120 billion, making it the second most profitable company globally, and its price-to-earnings (P/E) ratio stands at 36.1 versus 22.3 for the State Street Energy Select Sector SPDR ETF. Despite the surge in energy stocks, analysts highlight that Nvidia’s revenue grew by 65% over the past year, suggesting its long-term value may outshine traditional energy investments even as the latter appear undervalued.
