Nvidia Now Larger Than 6 Out Of 11 US Sectors—Tom Lee Says It's 'Cheaper Than Costco:' AI Stocks Still In 'Really Good Shape'

Benzinga

Nvidia’s market cap hit $4.8 trillion, accounting for 8.5% of the S&P 500—an unprecedented level of concentration. Fundstrat’s Tom Lee dismissed bubble concerns, citing strong AI fundamentals and predicting continued fund inflows through year-end.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03NVIDIA's market cap soared to $4.8 trillion, representing 8.5% of the entire S&P 500,

00:10a concentration unseen in modern history, according to Benzinga.

00:14The AI chipmaker's valuation now exceeds the combined market caps of over 240 of the S&P 500's

00:20smallest firms and the materials, real estate, and utilities sectors combined.

00:25Fundstrat's Tom Lee told CNBC the AI trade remains in really good shape fundamentally.

00:30Rejecting claims of a bubble and noting NVIDIA's 29 times forward earnings multiple is still

00:36cheaper than Costco.

00:37Lee cited strong visibility in AI spending and ongoing innovation as reasons for continued

00:43upside, predicting fund managers will chase into year-end as underperformance pressures

00:48mount.

00:48Shares rose 5.79% to $199.05 on Monday and gained 0.47% after hours.

00:57For all things money, visit Benzinga.com.

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