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Nvidia Becomes First $5 Trillion Company as AI Heavyweights Concentrate the S&P 500

Surging AI infrastructure spending signals demand outpacing supply.

Overview

  • Nvidia crossed the $5 trillion market-cap threshold last week, surpassing Apple and Microsoft to remain the most valuable public company.
  • Nvidia shares have climbed roughly 1,400% over three years, moving from a $4 trillion valuation in July to $5 trillion in early November.
  • About one-third of the S&P 500’s total value is now concentrated in a small group of mostly AI-focused megacaps, magnifying their sway over index moves.
  • Analysts are split between warnings of a bubble reminiscent of 2000 and arguments that strong, real-world AI adoption supports current valuations.
  • Amazon, Meta, and Alphabet guided 2025 capex of about $125 billion, $117 billion, and $92 billion, respectively, while Microsoft reported $34.9 billion in its latest quarter and signaled higher 2026 spending.