News: Apple, Microsoft, and 3 other stocks are now worth nearly $9 trillion – or almost 25% of the S&P 500

According to TheBoomBust.com, the five largest companies in the S&P 500, namely Apple, Microsoft, Alphabet, Amazon, and Nvidia, have a combined market capitalization of nearly $9 trillion, which accounts for approximately 25% of the benchmark index.

Tech stocks, driven by the buzz surrounding artificial intelligence (AI) following OpenAI's ChatGPT launch, have had a strong start to the year. This has triggered not only a tech war among industry giants like Microsoft, Alphabet, and Meta to lead the AI boom but also a surge of investors investing in stocks that can leverage the AI revolution.

Among these companies, Nvidia has experienced significant growth, with its stock surging by 116.55% since the beginning of 2023. It is currently the top-performing stock on the S&P 500, boasting a market capitalization of $773 billion. Nvidia is considered well-positioned to benefit from the AI boom as the leading producer of graphic chips necessary for intensive computing.

While some investors, such as billionaire Paul Tudor Jones, believe AI could fuel a productivity surge, Bank of America's top strategist, Savita Subramanian, has cautioned about potential challenges for the tech sector. In a recent CNBC interview, Subramanian advised investors to avoid mega-cap tech stocks, as she believes a "big asset bubble" is forming in growth shares. She stated that mega-cap tech stocks are no longer the leading players and that the tech sector is displaying cyclicality in the current market environment.