Nvidia’s stock surged 150% YTD, reaching a $3 trillion valuation on June 18. The chipmaker now commands 80% of AI processor market share, with data center revenue growing 427% YoY. This reflects the AI infrastructure gold rush as companies scramble to deploy large language models.
The “Magnificent Seven” tech stocks now account for 33% of the S&P 500 – a record concentration raising diversification concerns. Meanwhile, the AI boom is lifting semiconductor equipment makers (ASML, Applied Materials) and cloud providers (Microsoft Azure, Google Cloud) benefiting from increased demand.
Some analysts warn of bubble risks, noting Nvidia trades at 35x sales versus Apple’s 7x. However, with global AI spending projected to hit $1 trillion by 2030, the growth runway appears substantial. Investors should watch earnings revisions and chip inventory levels for signs of slowdown.
