Five tech giants dominate S&P 500 with 28.8% share driven by AI growth

Five major companies now make up 28.8% of the S&P 500 index, with a combined market cap of $14.9 trillion. These companies are Apple, Nvidia, Microsoft, Alphabet, and Amazon, which have significantly influenced the index's performance. In 2024, the S&P 500 returned 25%, driven by these companies' strong gains, particularly in artificial intelligence. Their investments in AI are expected to reach hundreds of billions of dollars this year, enhancing their market positions. Apple has launched new AI features for its devices, while Nvidia has introduced advanced GPUs for AI development. Microsoft has integrated AI into its software, and Alphabet is adapting its search engine with AI responses. Amazon is enhancing its e-commerce and cloud services with AI technologies.