Nvidia reaches a historic high in S&P 500 and is allowed to resume sales of chips to China. Apple and Alphabet also draw attention due to their overbought status.
Nvidia's Record Share in S&P 500
Nvidia has climbed to 8% of the S&P 500, the biggest share any single company has had in the index since 1981, according to data from CNBC. The previous record was held by Apple, which crossed the 7% mark in 2023. Even at the height of the dot-com bubble, Microsoft and General Electric didn't exceed 4%.
U.S. Approves AI Chip Exports to China
The U.S. Commerce Department has begun issuing licenses for Nvidia to export its H20 AI chips to China. This move comes after Washington reversed an April ban. Nvidia had warned that the sales ban could wipe $8 billion from its quarterly revenue.
Apple and Alphabet: Indicators of Overbought Stocks and Trade Desk's Decline
Apple and Alphabet are now among Wall Street’s most overbought stocks according to the 14-day relative strength index. Apple’s RSI reached 72 after a 13.3% weekly jump while Trade Desk faced a decline of 37% for the week.
The dynamics of Nvidia, Apple, and Alphabet stocks reflect current trends in the stock market. The approval for chip exports to China may benefit Nvidia and enhance its financial position.
