This chapter explores the market's heavy reliance on a few leading tech companies, raising concerns about a concentration bubble and potential risks associated with passive investing. It also compares the returns and volatility of Nvidia and Bitcoin, highlighting the exposure of retirement funds to Nvidia and the implications of a significant decline in its stock.
Nvidia has ridden the AI wave all the way to the top of the public markets, exceeding the market cap of Apple and Microsoft to become the world's biggest company for the first time. NLW discusses what it says about the state of AI in public markets.