Tech and AI Stocks Reach Unprecedented Market Concentration, Echoing Dot-Com Bubble Warnings
Technology and artificial intelligence stocks now dominate global markets with an intensity not seen since the dot-com era. The so-called "Magnificent Seven" tech giants account for nearly 40% of the S&P 500's value, with Nvidia alone commanding a $4.4 trillion valuation.
Market concentration has reached historic levels, surpassing even the 2000 peak before the dot-com crash. Eight tech firms currently represent 37% of the benchmark index, creating what some analysts view as a precarious imbalance. The last time tech stocks commanded such market share, it preceded a major correction.