Home Science Technology Nvidia Drives S&P 500 Gains, Outperforming Microsoft and Meta by Fivefold

Nvidia Drives S&P 500 Gains, Outperforming Microsoft and Meta by Fivefold

Nvidia Market Cover
Nvidia Market Cover

In May, the S&P 500 index surged nearly 5%, contributing to an 11.3% increase over the first five months of the year.

Nvidia, fueled by the ongoing AI boom, emerged as the primary driver of this growth, significantly outpacing other tech giants.

According to data from AltIndex.com, Nvidia accounted for 32.3% of the S&P 500’s total return from January to May, a contribution five times greater than that of Microsoft and Meta.

Nvidia Boosts S&P 500 with a 3.65% Contribution

Nvidia has experienced a stellar year, with its stock price soaring due to impressive quarterly results. The company’s valuation increased by nearly half a trillion dollars in 2024 alone.

In February, Nvidia’s stock value surged by $276 billion in one day following its Q4 2024 earnings report. A similar surge occurred in May after the company reported a 262% increase in revenue and a 645% rise in net income for Q1 FY 2025, resulting in a $217 billion boost in stock value.

This exceptional performance translated to a 121% return for investors over five months, making Nvidia the top performer on the S&P 500. Its contributions added 3.65% to the index’s overall return, far surpassing Microsoft (0.78%), Meta (0.66%), and Amazon (0.58%). Microsoft stocks provided an 11.3% gain, while Meta and Amazon delivered gains of 40.4% and 19.7%, respectively.

Tesla Among Biggest Drags on S&P 500

Conversely, Tesla, despite being a leading AI and automotive company, negatively impacted the S&P 500. Struggling with missed sales targets, rising competition from China, and reputation issues, Tesla’s stock fell by 27% over five months, detracting 0.52% from the index.

Other notable detractors included Intel, Adobe, and Boeing, which collectively pulled the index down by 1.8%, 1.4%, and 1.1%, respectively.

Nvidia’s remarkable contribution highlights the significant impact of AI-driven companies on the stock market, underscoring the tech sector’s role in shaping financial trends in 2024.

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