Nvidia’s 8.34% S&P 500 Weight Shows Market Concentration

Nvidia’s 8.34% weighting in the S&P 500 highlights how a small group of companies has shaped the benchmark’s roughly 23% advance since March.

The index rose from 6,343.72 on March 30 to 7,790.91 on Oct. 9, a gain of about 22.8%. Nvidia accounted for 8.34% of the index as of Oct. 8, while its 10 largest constituents represented a combined 39.05%.

The group consisted of Nvidia, Apple, Microsoft, Amazon, Alphabet Class A, Broadcom, Alphabet Class C, Meta Platforms, Micron Technology and Tesla.

Because the S&P 500 is weighted by market capitalization, larger companies have a greater effect on its performance. The index includes 500 companies and covers about 80% of available U.S. market capitalization.

Nvidia’s financial results also underscore the company’s importance to the artificial-intelligence computing theme. Revenue reached $96.221 billion in the quarter ended July 26, including $89.0 billion from its Data Center business.

The company reported diluted GAAP earnings of $2.46 per share and non-GAAP diluted earnings of $2.22 per share. Nvidia also returned about $26.0 billion to shareholders through stock repurchases and dividends during the quarter.

“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” Nvidia founder and CEO Jensen Huang said.

“And demand is accelerating,” Huang said.

The concentration follows a broader pattern in which large technology companies have exerted an outsized influence on market-capitalization-weighted indexes. Nvidia’s large role in the S&P 500 has previously drawn attention because of its index weighting.