Concentration in mega-cap tech stocks hits a record, surpassing the 2000 dot-com peak by 14 percentage points.
The 10 largest US stocks, dominated by the Magnificent Seven, now account for 41% of the S&P 500’s market capitalization. This marks a 14 percentage point increase over the 2000 dot-com bubble peak, signaling heightened concentration in tech giants like Apple and Tesla.
At the 2000 peak, the top 10 stocks represented 27% of the index. The current level underscores a surge in investor focus on artificial intelligence and mega-cap tech, with roughly 35% of every dollar invested flowing into the Magnificent Seven alone.
Nvidia’s latest earnings report highlighted the trend, posting record revenue of $81.6 billion, an 85% year-over-year surge driven by its data center division, which generated $75.2 billion.