Semiconductor Stocks Reach Record 18.8% of S&P 500

Semiconductor stocks now account for a record 18.8% of the S&P 500’s market capitalization, more than triple their share in 2022. The increase follows a 546% rally in the SOX semiconductor index, fueled by strong demand for artificial intelligence infrastructure. The concentration matters because semiconductor companies now represent a larger portion of the index than they did during the Dot-Com era, while the Magnificent Seven make up about 33% of the S&P 500’s value. According to Apollo, nearly all of the index’s gains since January have come from AI and energy stocks, highlighting the market’s growing reliance on a small number of sectors.