Nvidia Reaches $4 Trillion Market Cap
Nvidia (NASDAQ: NVDA) became the first company to surpass a $4 trillion market cap on Wednesday, a significant milestone fueled by investor enthusiasm for artificial intelligence and the tech sector. This surge highlights the concentration of major stocks in key indices: Nvidia comprises 13.6% of the Nasdaq-100 and 7.1% of the S&P 500.
As of now, Nvidia’s valuation marks a sharp ascent from its previous standing compared to tech giants like Apple and Microsoft. The Vanguard S&P 500 ETF has $1.43 trillion in net assets and heavily features Nvidia as part of its portfolio, underscoring the influence of a select few companies on major market indices.
The growing dominance of large-cap tech firms raises concerns about index concentration, which could pose risks for investors relying on index-based funds or ETFs for diversification.
