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Bank of America (BofA) on Friday highlighted figures underscoring the big impact Nvidia (NASDAQ:NVDA) and the AI investing trend is having on the S&P 500 (SP500)(SPY).
The broad market index (SP500)(IVV) has climbed just over 12% this year, and circled around fresh record highs during Friday’s session. Strip out Nvidia’s stock (NVDA) and the S&P 500’s YTD advance narrows to 7.9%, strategists led by Michael Hartnett said.
The AI chip maker’s stock (NVDA) has soared ~140% since 2024 kicked off, pushing the company beyond a $3T valuation this week.
The S&P 500’s (SP500)(VOO) gain draws down to 4.9% YTD excluding the so-called Magnificent 7 group of stocks: Nvidia (NVDA), Alphabet (GOOGL)(GOOG), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT) and Tesla (TSLA).
BofA said the index’s YTD rise then moves to 3.6% excluding what it calls the “AI Big Ten” group of stocks: (NVDA), (GOOG), (MSFT), (META), (AMZN), as well as Broadcom (AVGO), Qualcomm (QCOM), AMD (AMD), Applied Materials (AMAT), and Micron (MU).
As investors grab for exposure to artificial intelligence plays, AI Big Ten’s market cap has jumped to $13T from $5T since Q1 2023, BofA said.
The AI-centered group also represents a “narrow monopolistic tech ‘revenue’ bull” as revenues have surged to $26T from $15T.
Nvidia (NVDA) shares during Friday’s session slipped about 0.4%. A 10-for-1 stock split goes into effect after the market closes, and shares will trade on a split-adjusted basis on June 10 at market open.
