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Nvidia now makes up 8% of S&P 500, highest share for any stock since 1981

Nvidia now makes up 8% of S&P 500, highest share for any stock since 1981

CryptopolitanCryptopolitan2025/08/10 01:10
By:By Jai Hamid

Share link:In this post: Nvidia now makes up about 8% of the S&P 500, the largest share for a single stock since 1981. The U.S. has approved licenses for Nvidia to sell its H20 AI chips to China after reversing an earlier ban. Apple and Alphabet are flagged as overbought, with Apple gaining 13.3% and Alphabet up 6.5% this week.

Nvidia has climbed to about 8% of the S&P 500, the biggest share any single company has had in the index since 1981, according to data from CNBC.

The only other stock to cross 7% was Apple in 2023. Even in the height of the 2000 dot-com bubble, Microsoft and General Electric never went past 4%.

IBM’s peak in 1984 was about 6%, which now sits below Nvidia’s new record. This level means Nvidia’s daily price changes can sway the entire index more than any other company has in over four decades.

The scale of Nvidia’s weight also shows how concentrated the market has become. One stock now holds a share bigger than any company during several of the most famous bull markets. That includes the 1999–2000 tech frenzy and IBM’s mid-80s corporate peak.

U.S. approves H20 chip sales to China after earlier ban

The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China. The move comes after Washington reversed an April ban last month. Nvidia had created the H20 to comply with Biden-era rules on AI chip exports, but those restrictions still stopped shipments to China earlier this year.

The company had warned in July that the sales ban could wipe $8 billion from its quarterly revenue. During the same month, Nvidia applied for licenses and was told approvals would be fast.

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On Wednesday, CEO Jensen Huang met with President Donald Trump at the White House, according to Reuters. It is still unclear how many licenses have been issued, which Chinese buyers can receive the H20, or the total shipment value.

The new clearance reopens one of Nvidia’s biggest markets. While the H20 was designed to stay inside the export limits, the previous ban cut the company off from Chinese clients until now.

Apple, Alphabet flagged as overbought while others slide

Apple and Alphabet are now among Wall Street’s most overbought stocks by the 14-day relative strength index (RSI), which measures momentum. An RSI above 70 can suggest a pullback is near.

Apple’s RSI reached 72 after a 13.3% weekly jump — its biggest gain in over five years — boosted by an extra $100 billion pledge for U.S. investment. That adds to the $500 billion commitment made in February.

Apple’s expanded domestic production plans appear to shield it from Trump’s newly announced 100% tariffs on imported semiconductors and chips.

Trump said on Wednesday that companies building in the U.S. would not be subject to the duties. The statement came after Apple’s July 31 earnings showed 10% revenue growth, its fastest since late 2021.

Alphabet rose 6.5% for the week, with its RSI hitting 75. The company’s late-July earnings showed revenue up 14% year-over-year. Alphabet also plans to raise 2025 capital spending by $10 billion to handle rising demand for its cloud services.

See also Berkshire Hathaway is underperforming the stock market by highest margin in 50 years

On the opposite side, Airbnb is among the most oversold stocks. Its RSI sits at 29 after a 5.3% drop this week. While it beat second-quarter forecasts, Airbnb warned of a weaker second half, guiding Q3 revenue between $4.02 billion and $4.10 billion, with analysts expecting $4.05 billion.

The Trade Desk took the biggest hit. Its shares fell 37% for the week and plunged 39% on Friday alone, the worst single day in company history.

The drop followed second-quarter results that topped estimates but were overshadowed by new competition from Amazon in online ads and the resignation of CFO Laura Schenkein.

CEO Jeff Green also mentioned inflation pressures from Trump’s tariffs during the earnings call. Multiple analysts, including those from Citi, Wedbush, Bank of America, and MoffettNathanson, cut their ratings.

Citi analyst Ygal Arounian wrote , “We still don’t believe Amazon is the main factor here, but results will inevitably raise more investor questions around the competitive environment and will remain an overhang.”

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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