Nvidia shares power S&P 500’s market cap surge with 36% contribution in 2024

On the other hand, Tesla Inc is the biggest loser on the S&P 500 index, losing around $232 billion in market cap so far this year. Intel Corp follows with a loss of around $84 billion, and Adobe Inc with a loss of $70 billion.

Shares of US-based chipmaker Nvidia Inc had a blockbuster 2024 so far, gaining nearly 150 percent and hitting fresh highs along the way.

This has been a major factor in the $4.49 trillion (12 percent) increase in the S&P 500’s market capitalization (market cap) to $47.16 trillion this year.

The frenzy over generative artificial intelligence has sent NVIDIA’s market cap soaring $1.64 trillion this year. In other words, it is responsible for roughly 36 percent of the rise in the S&P 500’s market cap.

Nvidia continues to dominate the American stock market, reaching a market capitalization of $2.86 trillion on June 5th, surpassing Apple as the world's second most valuable company.

Read: World Street | Nvidia hits $3-trln mcap, US markets at record high, Foxconn ups guidance and more

It became the first semiconductor firm to hit $2 trillion in market capitalization in February 2024. With control over 95% of the AI chipset market in the US, Nvidia's strong quarterly earnings reports have propelled its stock price to record levels, nearly tripling over the past year.

It has become a go-to choice for companies seeking AI solutions, providing both chips and software. Reporting record earnings, Nvidia's first-quarter fiscal 2025 results showed a 262 percent year-on-year growth in revenue and a 628 percent increase in net income. The company's data center segment experienced a five-fold revenue increase, benefiting significantly from the AI boom.

Read: Nvidia tops $3 trillion in value, leapfrogging past Apple

Apart from Nvidia only heavyweight's like Alphabet Inc, Meta Platforms Inc, Microsoft Corp, Amazon.com are driving the stock market. They are collectively responsible for 28 percent of the rising S&P500's mcap this year.

On the other hand, Tesla Inc is the biggest loser on the S&P 500 index, losing around $232 billion in market cap so far this year. Intel Corp follows with a loss of around $84 billion, and Adobe Inc with a loss of $70 billion.

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