How Concentrated AI Tech Stocks are Impacting the S&P 500 Performance
The S&P 500 Index, a well-known stock market index, tracks the performance of 500 of the largest U.S. companies. Many large-cap ETFs passively follow this broad index, and investors use it as a benchmark to gauge the relative performance of their portfolios. This year, however, a unique phenomenon is impacting the S&P 500. AI stocks are driving much of the index’s total return.
The artificial intelligence (AI) industry is experiencing rapid growth. Large technology companies are investing billions in computer chips to train their AI models. As a result, AI chip makers have contributed to more than one third of the S&P 500 Index’s year-to-date return.
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