Eseandre Mordi
⬤ AI stocks have taken over a massive chunk of the global equity market, now representing roughly 23% of worldwide market capitalization—nearly an all-time high. This figure has essentially doubled since November 2022, right when ChatGPT burst onto the scene and ignited serious investor interest in artificial intelligence.
⬤ Data from Bespoke Investment Group shows this dramatic climb, with AI-driven stocks climbing steadily from the low-teens percentage in late 2022 to over 22% by late 2025. The trajectory tells the story of how quickly AI went from emerging theme to market-dominating force.
⬤ The concentration looks even more extreme when you zoom in on U.S. markets. AI-related companies now make up a record 46% of the S&P 500's total market cap, compared to just 27% back in November 2022. That's a staggering shift in less than three years, with a relatively small group of AI-focused companies now accounting for nearly half the index's value.
⬤ This concentration matters because it means the broader market's fate is increasingly tied to how AI stocks perform. When such a large portion of global and U.S. benchmarks depends on one sector, any shift in AI sentiment, growth expectations, or performance can move entire markets. Investors need to keep close tabs on this concentration risk as it reshapes market dynamics.
Eseandre Mordi
