Nvidia's stock is responsible for a third of the S&P 500's gains this year

By Emily Bary

Alphabet, Microsoft, Meta, Amazon together account for another quarter, according to UBS

Need another sign of Nvidia Corp.'s market dominance? Its shares have accounted for 34% of the S&P 500's ascent so far this year, according to UBS.

Shares of Nvidia (NVDA) are up 121% thus far in 2024, and they're ahead another 3% in Monday's premarket action following Chief Executive Jensen Huang's weekend keynote at the Computex conference.

Huang teased Nvidia's "Rubin" chip architecture, which is intended to follow the upcoming Blackwell lineup come 2026. He also announced new Blackwell systems, a new Blackwell platform for modular server design and a one-year cadence for the company's Spectrum-X offering, according to Citi.

Read: Nvidia speeds up its AI-chip roadmap, next-generation Rubin platform coming in 2026

"Net-net, we view all four announcements as great depiction of Nvidia's efforts to lean on its existing AI accelerator dominance to establish a robust presence in what is for the company a mostly untapped combined accelerated computing [total addressable market]" that could stand in excess of $1 trillion," Citi Research analyst Atif Malik wrote in a note to clients.

Other large technology names have been major contributors to the S&P 500's SPX charge higher as well. Together, shares of Alphabet Inc. (GOOG) (GOOGL), Microsoft Corp. (MSFT), Meta Platforms Inc. (META) and Amazon.com Inc. (AMZN) account for 26% of the index's 10.6% year-to-date rally.

Meanwhile, Tesla Inc. shares (TSLA), down 28%, are the S&P 500's biggest detractor so far in 2024, UBS data show. Intel Corp. shares (INTC), down 38%, are the next largest.

In general, "growth is leading value given superior earnings," UBS strategist Patrick Palfrey wrote in a Monday note to clients. "While Big?Tech stocks are contributing to the upside, this pattern is being experienced across most sectors."

See also: Chip stocks now dominate S&P 500 index for first time

-Emily Bary

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06-03-24 0842ET

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