Nvidia's 8% Grip on the S&P 500 Is Unlike Anything Wall Street Has Seen: Jensen Huang-Led Chipmaker is 'Making History,' Says This Commentator

Nvidia Corp. (NASDAQ:NVDA) accounts for roughly 8% of the S&P 500’s total market cap, a scale of dominance built almost entirely on the AI boom, leaving the chipmaker alone outweighing five of the index’s 11 sectors combined.

Market Cap Now Exceeds Five Sectors Combined

Nvidia’s market cap alone exceeds the combined value of the energy, utilities, real estate, consumer staples, and materials sectors, and is larger than every other sector except information technology, communication services, financials, health care, and consumer discretionary, according to data shared by The Kobeissi Letter on X.

The market commentator said Nvidia’s historic rise is now equivalent to 16.3% of U.S. GDP.

A Rivalry With Apple for the Top Spot

Nvidia’s $5.41 trillion market cap remains ahead of Apple Inc.‘s (NASDAQ:AAPL) $4.74 trillion, after the two companies have repeatedly traded the title of the world’s most valuable company since 2024.

Nvidia first passed Apple to claim the title of the world’s most valuable company in June that year, briefly lost it, then reclaimed the top spot from Microsoft Corp. (NASDAQ:MSFT) in June 2025 and crossed $5 trillion in October 2025.

Apple briefly reclaimed the title in July as tech market trends shifted, before Nvidia’s latest earnings pushed it back into the lead.

Growth that Outpaces Peers

Nvidia has guided for $108 billion in third-quarter revenue, which would mark roughly 1,730% revenue growth over four years, a pace unmatched by any company of its size in modern history. Second-quarter revenue of $96.22 billion beat Wall Street’s $92.11 billion estimate.

Raymond James analyst Simon Leopold said Nvidia could reach $1 trillion in annual sales by fiscal 2029.

ETF Exposure

The VanEck Semiconductor ETF (NASDAQ:SMH), which has gained 47.46% so far this year and 92.19% over the past year, allocates 22.11% of its portfolio to Nvidia.

The Technology Select Sector SPDR Fund (NYSE:XLK) holds a 14.47% weighting in the company and is up 27.23% year-to-date and 40.50% over the trailing 12 months.

Meanwhile, the iShares Semiconductor ETF (NASDAQ:SOXX) maintains a 9.01% allocation to Nvidia, with year-to-date returns of 59.85% and 107.48% over the past year.

Among broader market funds, Nvidia makes up 8.44% of the Invesco QQQ Trust (NASDAQ:QQQ), which has climbed 15.68% year-to-date and 24.41% over the past year, while it accounts for 7.71% of the SPDR S&P 500 ETF Trust (NYSE:SPY), which is up 12.00% year-to-date and 18.86% over the past year.

Price Action: Nvidia’s shares climbed 3.21% to close at $224.41 on Wednesday and gained 0.44% in extended trading.

Benzinga edge rankings indicate Nvidia’s stock has a Momentum score in the 75th percentile and a Growth score in the 98th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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