No. of Recommendations: 6
The five biggest S&P 500 companies have a combined market capitalization worth nearly $9 trillion ' or almost 25% of the benchmark index.
The top companies include tech giants Apple, Microsoft, Alphabet, Amazon and Nvidia, TheBoomBust.com first reported on Twitter.
Tech stocks have had a smashing start to the year thanks to the hype around artificial intelligence, following the launch of OpenAI's ChatGPT.
Excitement around AI has not only seen a tech war breakout among industry giants including Microsoft, Alphabet and Meta to lead the AI boom, but also a flurry of investors parking their money in stocks best able to take advantage of the AI revolution.
Nvidia has specifically enjoyed the ride to the top, with the Santa Clara-based chipmaker's stock surging 116.55% since the start of 2023, making it the best-performing stock of the year on the S&P 500. The company has a market cap of $773 billion.
https://markets.businessinsider.com/news/stocks/ap...Is AI now leading tech stocks into a new bubble, much like internet did in 1990s?
Nvidia has moved past Berkshire into 5th place by market cap. It is being touted as the next trillion dollar company set to pass Apple as the most valuable company in a few years.
Remember Cisco in 2000? At its peak it traded at PS multiple of 30. (YES that's PS not PE). Nvidia is a relative bargain at a mere 26 times 2024 sales. 23 years later Cisco, though still a leading networking company, has not yet passd its all time high.
I think I prefer Munger's and Buffett's old fashioned natural intelligence when it comes to investing.
