The biggest stocks in the market are massive for a reason 💪
"Fundamental results can justify rising concentration" 💰

AI-hardware behemoth Nvidia saw its market value rise above $3 trillion on Wednesday. It’s now the second-largest company behind Microsoft and ahead of Apple.
The news is bringing fresh attention to how big some of these megacap tech companies have become.
We’ve discussed extensively how the values of these big companies are arguably justified (here, here, and here), and how Nvidia’s rally has been supported by tangible demand for its offerings (here, here, and here).
But as long as market pundits sound alarms on trillion-dollar market caps and historically high market concentration while ignoring or downplaying the fundamental earnings power of these companies, then we’ll keep revisiting this big market story in context.
‘Fundamental results can justify rising concentration’ 💪
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