The 3 tech stocks accounting for over 20% of the S&P 500

Nvidia (NVDA), Microsoft (MSFT), and Apple (AAPL) are lifting the S&P 500 (^GSPC) to record levels as the index grows increasingly concentrated in these three tech giants.

Yahoo Finance Executive Editor Brian Sozzi shares his take on these concentration trends.

Tech is having another moment to remember. The stock market is pretty much being kept afloat by three increasingly larger tech stocks.

That is none other than AI Chip King Nvidia, foldable phone wannabe Apple, and NFL sideline Surface tablet seller Microsoft.

The S&P 500 has never been more concentrated in just three stocks than it is today with Nvidia, Apple, and Microsoft representing, get this, over 21% of the index.

According to new data from uh Creative Planning, love their work.

The importance of three stocks to the S&P 500 has never been, well, more important.

Only IBM, AT&T and Exxon Mobile could hold a candle to the three tech beasts of today. Back in the mid-1980s when I was a young pup studying the Wall Street Journal and thinking about stocks,

those three industrial, old industrial giants at their peak made up 13.4% of the S&P 500.

Nvidia, Apple, and Microsoft have been enjoying higher stock prices over the past month on the back of favorable news, pushing them to their record concentration in the S&P 500.

And you're getting a Yahoo for this one, and this one is not the Yahoo sign. This one is.

[Sound of a Yahoo yodel] There we go.

To all this, I simply say two things. One, what could possibly go wrong with all the excess enthusiasm for three tech stocks?

And two, there are 497 other companies in the S&P 500 and I assure you there are great investing opportunities from this patch effect. You go on to Alpha Space and you do the work on TSMC.

This thing just hit a record high. Go out and do the work on it.