Technology's dominance on Wall Street has reached unprecedented levels, with the sector now representing 37% of the entire U.S. stock market, surpassing even the height of the dot-com bubble as mega-cap names like Nvidia Corp. (NASDAQ:NVDA), Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) lead a five-year rally.
Tech Is ‘All That Matters'
On Wednesday, The Kobeissi Letter highlighted the milestone on X, formerly Twitter, writing, "Tech stocks effectively are the stock market: Technology stocks now reflect a record 37% of the total U.S. stock market. That share has doubled in just 5 years. It also now exceeds the 2000 Dot-Com Bubble peak by 4 percentage points."
The post added that tech's share of the global market outside the U.S. has also risen to about 11%, the highest level in four years. "Tech is all that matters," the note concluded.
Nasdaq 100 And QQQ's Outperformance
The surge in tech valuations has been mirrored in the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), which has gained 114.72% in the past five years, according to Benzinga Pro.
The index's outperformance underscores how heavily market gains have leaned on mega-cap tech names.
Below is the performance of the magnificent 7 stocks, which include Nvidia, Meta, Alphabet, Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN) and Tesla Inc. (NASDAQ:TSLA).
While not all members of the magnificent 7 are rising equally — with Apple and Tesla lagging year-to-date — the group's collective strength has propelled technology's share of the U.S. market to levels never seen before.
| Company | Ticker | YTD Performance | 1-Year Performance | 5-Year Performance |
|---|---|---|---|---|
| Apple | AAPL | ▼ 7.00% | ▲ 1.85% | ▲ 102.49% |
| Microsoft | MSFT | ▲ 19.54% | ▲ 18.28% | ▲ 145.24% |
| Amazon | AMZN | ▲ 4.59% | ▲ 24.83% | ▲ 47.83% |
| Alphabet (Class C) | GOOG | ▲ 25.67% | ▲ 57.45% | ▲ 215.04% |
| Alphabet (Class A) | GOOGL | ▲ 26.26% | ▲ 58.22% | ▲ 215.57% |
| Meta Platforms | META | ▲ 25.49% | ▲ 46.92% | ▲ 182.05% |
| Tesla | TSLA | ▼ 8.30% | ▲ 52.45% | ▲ 179.93% |
| Nvidia | NVDA | ▲ 28.21% | ▲ 51.68% | ▲ 1358.31% |
Benzinga's Edge Stock Rankings show that NVDA maintains a solid upward trajectory across short, medium and long-term horizons, with additional performance details available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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