Despite growing fears that the AI stock boom led by giants like Nvidia Corp. (NASDAQ:NVDA) is mirroring the late-1990s dot-com bubble, Charles Schwab‘s Kevin Gordon argues that today’s market fundamentals tell a much healthier, diversified story.
Stop ‘Cherry-Picking’ Data
While it feels like a top-heavy market driven by a handful of AI titans, Gordon warned investors against “cherry-picking” narrow time horizons to prove a massive concentration risk.
Gordon, in conversation with Phil Rosnen, notes that while Nvidia is currently the top contributor to the S&P 500’s return purely due to its massive market cap, sheer contribution does not equal pure performance.
“If you look at its performance, there are almost 90 names in the S&P 500 that are seeing stronger gains this year, you know, in front of Nvidia,” Gordon explained.
He emphasized that there are still meaningful, often ignored pockets of outperformance in the market—such as small-cap tech significantly beating large-cap tech over the past year—if investors are willing to look under the surface.
This post was originally published here
