Nvidia Dominates: 8% of S&P 500—Largest Single-Stock Weight Since 1981
Nvidia just rewrote the rulebook. The AI-chip juggernaut now commands a staggering 8% of the entire S&P 500—the heaviest weighting any single stock has carried since Reagan's first term.
Wall Street's new overlord? The numbers don't lie. While analysts scramble to justify valuations, Nvidia's GPUs keep printing money faster than the Fed's dollar presses. Funny how 'exponential growth' only gets questioned when it's not in their own portfolios.
One thing's clear: when history books cover 2025's market frenzy, they'll start with the ticker NVDA. Whether it ends as a triumph or cautionary tale depends on who's holding the bag when the music stops.
U.S. approves H20 chip sales to China after earlier ban
The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China. The move comes after Washington reversed an April ban last month. Nvidia had created the H20 to comply with Biden-era rules on AI chip exports, but those restrictions still stopped shipments to China earlier this year.
The company had warned in July that the sales ban could wipe $8 billion from its quarterly revenue. During the same month, Nvidia applied for licenses and was told approvals WOULD be fast.
On Wednesday, CEO Jensen Huang met with President Donald TRUMP at the White House, according to Reuters. It is still unclear how many licenses have been issued, which Chinese buyers can receive the H20, or the total shipment value.
The new clearance reopens one of Nvidia’s biggest markets. While the H20 was designed to stay inside the export limits, the previous ban cut the company off from Chinese clients until now.
Apple, Alphabet flagged as overbought while others slide
Apple and Alphabet are now among Wall Street’s most overbought stocks by the 14-day relative strength index (RSI), which measures momentum. An RSI above 70 can suggest a pullback is near.
Apple’s RSI reached 72 after a 13.3% weekly jump — its biggest gain in over five years — boosted by an extra $100 billion pledge for U.S. investment. That adds to the $500 billion commitment made in February.
Apple’s expanded domestic production plans appear to shield it from Trump’s newly announced 100% tariffs on imported semiconductors and chips.
Trump said on Wednesday that companies building in the U.S. would not be subject to the duties. The statement came after Apple’s July 31 earnings showed 10% revenue growth, its fastest since late 2021.
Alphabet ROSE 6.5% for the week, with its RSI hitting 75. The company’s late-July earnings showed revenue up 14% year-over-year. Alphabet also plans to raise 2025 capital spending by $10 billion to handle rising demand for its cloud services.
On the opposite side, Airbnb is among the most oversold stocks. Its RSI sits at 29 after a 5.3% drop this week. While it beat second-quarter forecasts, Airbnb warned of a weaker second half, guiding Q3 revenue between $4.02 billion and $4.10 billion, with analysts expecting $4.05 billion.
The Trade Desk took the biggest hit. Its shares fell 37% for the week and plunged 39% on Friday alone, the worst single day in company history.
The drop followed second-quarter results that topped estimates but were overshadowed by new competition from Amazon in online ads and the resignation of CFO Laura Schenkein.
CEO Jeff Green also mentioned inflation pressures from Trump’s tariffs during the earnings call. Multiple analysts, including those from Citi, Wedbush, Bank of America, and MoffettNathanson, cut their ratings.
Citi analyst Ygal Arounian wrote, “We still don’t believe Amazon is the main factor here, but results will inevitably raise more investor questions around the competitive environment and will remain an overhang.”
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