AI-linked stocks now make up nearly 45% of the S&P 500, a rise that shows how far the market has leaned into the artificial intelligence trade since late 2022, according to a Wednesday Goldman Sachs note. Nvidia (NASDAQ:NVDA) and other large AI names have helped push the index toward a narrower leadership profile.
The share was closer to 25% when ChatGPT launched in late 2022, Goldman Sachs said. Since then, investors have kept bidding up companies tied to chips, cloud platforms and AI infrastructure, with Nvidia remaining one of the clearest examples of that trend.
Goldman Sachs added that the increase in the climb began faster than expected in 2024 and 2025, which was aided by higher earnings, greater margins, and the belief that AI will aid productivity in the long run. That shift has been reflected in Nvidia gains as well, with capital pouring into a select few of mega-cap technology names.
The concentration poses a threat and an opportunity to Nvidia and the market in general. AI leaders have boosted index returns, and a greater dependence on a single theme can expose the S&P 500 to further downside in case the sentiment, valuations or spending patterns change.
The post “Goldman Issues Stark Message on S&P 500” first appeared on gurufocus