Seven firms including Nvidia and Microsoft have driven about three-quarters of the index's gain in 2023, in a rally stoked by an investor obsession with Al's potential to disrupt vast parts of the economy.
Valuations are high, with the companies' shares trading at an average of 32 times earnings.
Pressure is mounting on companies to deliver on some of the earnings hope embedded in their everrising stock prices.
"We're getting closer to the moment when the companies that are claiming AI-related profits will have to start showing them," said Mr Mark Lehmann, chief executive at JMP Securities.
"I am not calling for an expansion of multiples next year. The returns will have to come from companies actually turning in better profits." The companies just delivered record profits of US$99 billion (S$132.8 billion) in the third quarter. Now more is being asked of them, testament to how high the stakes have become for the stocks that have added around US$5 trillion to the market's value in 2023.
At nearly 30 per cent of the S&P 500, they have more sway over the benchmark than ever before.
Denne historien er fra December 12, 2023-utgaven av The Straits Times.
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Denne historien er fra December 12, 2023-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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VERDY'S APPROACH AN EYE-OPENER
Former Lions turned coaches Alam Shah and Isa inspired by stint with Japanese club
Lions' morale-boosting win comes at a price
The Lions got a much-needed morale booster ahead of the Asean Football Federation (AFF) Championship as they beat Tokyo Verdy 2-1 on Oct 11 in the second of three friendlies against J1 League opponents in their Japan training tour.
Conditions to blame for 'ugly' draw, says Messi
Argentina were held to a 1-1 draw by Venezuela on Lionel Messi's return, as Brazil got their 2026 World Cup qualifying campaign back on track with a last-gasp 2-1 victory over Chile on Oct 10.
Belgium punish Italy at set pieces in 2-2 draw
Italy coach Luciano Spalletti blamed bad luck, as Belgium bounced back from two goals down to draw 2-2 with his 10-man side in Rome on Oct 10 to boost their hopes of reaching the Nations League quarter-finals.
CARSLEY'S MIDFIELD OVERLOAD BACKFIRES
England temp boss dismayed by mistakes as Three Lions lose to Greece for first time
Player strike in England unlikely: Sports law expert
The chorus of frustrated players and managers speaking out against football's gruelling fixture schedule continues to grow, with Liverpool defender Ibrahima Konate the latest to say he would support players' right to strike.
SOCCEROOS HAVE NO FEAR
They head to Japan with confidence despite never having beaten the Samurai Blue there
Toyota back in F1 with Haas tie-up
The United States-owned Haas Formula One team and Toyota announced a multi-year technical partnership on Oct 11, in a move bringing Japan's biggest carmaker back to grand prix racing for the first time since 2009.
SABALENKA TO STICK TO HER BRAVE PLAN
World No. 2 will be aggressive in Wuhan semi against Gauff; Fritz takes on Djokovic
Nadal's beauty lay in his purity as a competitor
To appreciate the retiring Rafael Nadal we can flip through record books, hunt down Uncle Toni, sift the clay for archaeological clues, speak to Roger Federer's therapist, delve into the physics of spin, but really it's best if we start with a dictionary.