Connect with us


Just 20 Stocks Have Driven S&P 500 Returns So Far in 2023



Top 20 Stocks Drive Most of S&P 500 Returns

Just 20 Stocks Have Driven Most of S&P 500 Returns

Just 20 firms—mainly AI-related stocks—are propping up the S&P 500 and driving it into positive territory, signaling growing risk in the market.

The above graphic from Truman Du shows which stocks are making up the vast majority of S&P 500 returns amid AI market euphoria and broader market headwinds.

Big Tech Stock Rally

Tech and AI stocks have soared as ChatGPT became a household name in 2023.

The below table shows data from last month, highlighting that just a small collection of companies drove most of the action on the U.S. benchmark index.

Company RankNameContribution to S&P 500 ReturnAverage Weight
3NVIDIA 1.00%1.62%
7Alphabet (Class A Shares)0.34%1.72%
8Alphabet (Class C Shares)0.31%1.53%
10Advanced Micro Devices0.16%0.39%
11General Electric0.10%0.28%
15Walt Disney0.08%0.55%
16Booking Holdings0.07%0.28%
17Exxon Mobil0.06%1.37%
Top 20 Companies7.05%29.17%
S&P 500*7.55%100.00%

*Based on the Vanguard S&P 500 ETF as of April 11, 2023. Source: Vanguard S&P500 ETF, Bloomberg.

Microsoft invested $10 billion into OpenAI, the creators of ChatGPT. It has also integrated generative AI into its search engine Bing. This large language model is designed specifically to make search capabilities faster, generate text, and perform other automations.

Also of interest is NVIDIA, which is the most valuable chipmaker in America. It sells $10,000 chips called A100s that allow machine learning models to run. These models perform multiple tasks simultaneously to develop neural networks and train AI systems, including OpenAI’s ChatGPT. Companies that are developing AI-related services, such as chatbots or image generation, may use up to thousands of these chips.

Despite being the world’s most valuable company and a key driver of returns, Apple is an outlier among tech giants with no major projects announced in AI (so far).

Implications of Market Divergence

The problem with the strong gains seen in a few select AI-related stocks is that it clouds wider stock market performance.

Without the AI-led rally, the S&P 500 would be returning -1.4%. as of May 17, 2023.

This form of steep divergence, known as market breadth, often signals higher risk in the market.

When more companies experience positive returns it is less risky than a small handful seeing the majority of the gains. Today market breadth is very narrow, and these companies make up over 29% of the entire index’s market capitalization.

How long AI-related firms mask the broader performance of the S&P 500 remains to be seen. A growing number of market pressures, from higher interest rates to banking uncertainty could add further challenges.

green check mark icon

This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

Click for Comments


How Do Americans Watch TV in 2024?

While broadcast and cable remain the most popular form of watching TV, streaming services are at near-record levels of U.S. TV viewership.



How Do Americans Watch TV in 2024?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

When Netflix launched its online streaming service in 2007, there were originally 1,000 titles available in its content library through the $5.99 monthly disc plan. That same year, the first iPhone hit the market, President George W. Bush was in office, and the subprime mortgage crisis was upending financial markets. A lot has changed since then.

After launching its own production company in 2011 and releasing “House of Cards”, Netflix played an even greater role in shaping how Americans view TV today.

This graphic breaks down U.S. TV viewing by platform, based on data from Nielsen.

U.S. TV Viewership by Platform

Below, we show the share of Americans that watch TV through each major platform category:

PlatformShare of Viewing
April 2024

Other includes TV usage with other tuning sources, unmeasured video on demand, audio streaming, gaming, and other device (like DVD playback) use.

Today, broadcast and cable still account for the majority of TV viewership, making up more than half of total usage as of April 2024.

However, streaming services are capturing a near-record share of total U.S. TV viewership, at 38.4% overall. For perspective, just 26% of Americans had a video-on-demand subscription in 2014 and 81% paid for traditional TV. Now, 83% of households pay for streaming services.

The Top Streaming Service Providers in 2024

Overall, YouTube makes up the highest share of online streaming, with 238 million users in America, comprising a 9.6% share of total TV viewership as of April 2024.

PlatformShare of Viewing
April 2024
Prime Video3.2%
Other Streaming13.1%

Falling next in line is Netflix, with 174 million viewers in the U.S. this year, and millennials making up the biggest share of its audience.

Beyond the American market, Netflix was the top streaming provider by number of subscribers in 78 countries worldwide in 2023.

With 3.2% of total TV usage, Amazon Prime Video ranks in third. The platform has one of the highest share of subscribers watching ad-supported content, at 80% of viewers as of February 2024. By contrast, 7.5% of Netflix subscribers and 25% of Disney+ viewers watch ads.

YouTube is the only platform to surpass Amazon Prime Video in ad-supported content, which the company first began introducing in 2007.

Continue Reading
World Risk Poll 2024 How safe is today's world? Dive into the data