Bianco scenario puts AI at 51% of the S&P 500
Jim Bianco says adding SpaceX to the index would lift AI-related stocks to 51% of its weight, with two more IPOs raising the share further.
Key takeaways
- Bianco estimates AI-related stocks would make up 51% of the S&P 500 if SpaceX were included.
- He says the share would reach 55% if Anthropic and OpenAI went public before year-end.
Jim Bianco estimates AI-related stocks would account for 51% of the S&P 500 if SpaceX were in the index. He said the figure could reach 55% if Anthropic and OpenAI went public before year-end, though an OpenAI IPO is unlikely.
SpaceX is not yet eligible for the index, which requires companies to be publicly traded for at least 12 months. The earliest it could qualify is June 2027.
Bianco compared the potential concentration with the railroad theme of the 19th century. Bank of America strategists said this week that 10 AI stocks, including Nvidia, make up 42% of the US market, while the railroad figure reached 63%.
This article was produced with the help of AI technology. Source: Yahoo Finance
