Nvidia Apple and Microsoft now dominate the S&P 500

The stock market is currently being propped up by just three tech giants: Nvidia, Apple, and Microsoft. These companies now represent over 21% of the S&P 500, a level of concentration never seen before, according to data from Creative Planning. For comparison, in the mid-1980s, IBM, AT&T, and ExxonMobil collectively made up 13.4% of the index at their peak.

Nvidia has been a major driver of this trend, with its stock reaching record highs following a $150 billion stock buyback plan announced two weeks ago. This brings the company’s total buyback authorization to $235 billion, marking the largest share repurchase authorization increase in history.

Apple’s stock is also near record highs, fueled by its recent product unveilings in mid-September. The company introduced the iPhone Duo, a foldable device with a 5.4-inch front display that expands to 7.6 inches, along with the new iPhone 18 suite and updated AirPods.

Microsoft’s stock has also surged, despite a lack of major recent news. Analysts have raised earnings estimates for the company, citing expectations that AI demand will boost sales of its Azure cloud services.