Nvidia dominates the S&P 500 with a record content. But experts warn: The dependence on a single stock could also be doomed.
• Nvidia share has increased vigorously in recent years
• Record weight in S&P 500
• Observers warn of clumping risks for pension funds
High flight of the Nvidia share
Driven by chips for gaming, crypto and artificial intelligence, Nvidia has ignited a real course fireworks in recent years. Within three years, the shares on Nasdaq were able to increase by more than 1,000 percent. Since the beginning of the year, around 32 percent has been up to $ 177.27 (as of the final course of September 10, 2025).
In July, Nvidia was the first company with a stock market value of more than $ 4 trillion. An analyst even believes that the market capitalization of the chip giant could climb to $ 9 trillion by 2030.
Record weight in S&P 500
With the cracking of the 4-billion dollar brand, Nvidia even exceeded the previous Apple share in S&P 500. The company has thus achieved a record weight in the market-wide US index. According to Investopedia, the chip group currently stands for almost 8 percent of the index, while the Magnificent Seven (Apple, Amazon, Alphabet, Meta, Microsoft, Tesla and Nvidia) together make up for around a third. Nvidia is also dominant in numerous US pension plans. For index-bound funds that are often used in 401 (K) plans, the risk of one-sided dependency increases. For investors, this raises the question of whether their pension scheme depends too much on a single company.
Danger in Nvidia’s dominance?
In the second business quarter, Nvidia was able to increase its net profit by 59 percent to $ 26.4 billion and sales by $ 56 percent to $ 46.74 billion. For the third quarter, the company predicts sales of $ 54 billion, which would be a significant increase compared to $ 35.1 billion from the previous year.
But despite strong numbers, observers warn of dangers. Much of the AI boom has already been priced in, according to the investopedia of skeptics. There are also trade restrictions on China and increasing competitive pressure. If demand or political framework conditions tip over, index investors, for which the market dominance of NVIDIA was previously a big prize, could be made sensitive.
In addition, the macroeconomic location play a role. Near recordings on the markets could already heavily put a lot of tech values on small changes to the interest expectations, which could have a negative impact on the pension portfolios.
Editor finance.net
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