The S&P 500 is up around 5.7% year-to-date, but the move is being driven by a narrow set of names. The top 10 stocks account for roughly 5.1% points of that gain, with NVIDIA, AMD, and Broadcom contributing a significant share.

AI-linked infrastructure and chipmakers are estimated to be responsible for 30-40% of overall performance, with the sector approaching 45% of total index market capitalization. Capital is being directed toward a small group of companies tied to long-term compute demand.

This is creating a gap between index performance and underlying breadth. Gains are concentrated at the top, while most stocks continue to lag. Some rotation into energy and financials has emerged, but it remains limited compared to flows into AI. Market liquidity remains supported at the index level, though participation is uneven beneath the surface.

In digital assets, crypto has lagged U.S. equities this year, with tighter liquidity pointing to capital moving toward large-cap equity exposure. The shift reflects a preference for assets with visible earnings and clearer demand drivers.

The current setup is about positioning around a dominant theme. As flows narrow, markets become more sensitive to changes in expectations.

If the AI growth narrative holds, concentration can persist. If it weakens, the adjustment is likely to be sharper given how much of the move is driven by a few names.

By Ryan Lee, Chief Analyst at Bitget Research

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