Reported about 1 year ago
Nvidia has contributed over a third of the S&P 500's gains this year, with its market valuation exceeding $3 trillion. However, economist Torsten Sløk warns that this heavy reliance on Nvidia poses a significant risk for investors. While Nvidia's stock has surged 166% year-to-date, a decline could severely impact the S&P 500 due to its market cap weighting. As retail investors increasingly invest in S&P 500 index funds, their exposure to Nvidia's performance grows as well. Despite some skepticism about Nvidia's valuation, bulls like tech analyst Beth Kindig predict further market cap growth for Nvidia in the coming years.
Source: YAHOO