is the nasdaq 100 entirely dependent on nvidia?
it’s having an outsized effect, i think. might be interesting if the machine learning algorithm is picking up that it’s overvalued or whatever else and that’s why it’s excluded.
I wonder if it’s just 'cus Nvidia isn’t being talked about much. “AI” is the buzzword, the There’s Gold in Them Thar Hills of this bubble. Hardware is the picks and shovels, where the real cash is being made. If they’re just training this on scrapping text from the web, that’s an easy fact to overlook.
So a bit like how thematic ETFs are usually not a good investment, because they follow the hype and jump on the bandwagon at a point in time where prices have already run up?
In recent times? Probably to some degree, but not completely.
But I would argue that with stocks it isnt unusual for a small percentage to be the majority driver of gains. Even in smaller funds like the nasdaq100. This certainly holds true over the larger market see e.g. here.
I am sure there was a time where your sentence would have been equally true if you replace Nvidia with Tesla, Apple, Microsoft, Google and so on. At any one time it might depend on only one or a few companies, but those stocks will change and aren’t set in stone forever.
