Analysis: The weight of chip stocks in the S&P 500 has risen to 19.7%, a record high, sparking concentration concerns.

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Odaily Planet Daily News According to market data, the weight of the chip sector in the S&P 500 index has risen to a record 19.7%, nearly quadrupling from 2020 levels, driven primarily by the artificial intelligence (AI) investment boom. As AI infrastructure and computing power demand continue to expand, chip stocks have become one of the core drivers of the current U.S. stock market rally, further concentrating the overall structure of the S&P 500 around a few major tech and chip leaders, while also intensifying market concerns about excessive index concentration and overvaluation. Nevertheless, sustained inflows into related ETFs continue to support sector performance. Market participants are closely watching whether AI capital expenditures can be realized consistently to support current semiconductor valuation levels.
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