La Presse, this morning, is running an interesting piece about investments:
Thought I'd ask Copilot about all that money flowing into NASDAQ stocks, the tech sector...:
Investing, USA; what percentage of the market as a whole does NASDAQ currently represent?
As of the latest available data, NASDAQ represents a significant portion of the U.S. equity market, but not the majority. Here's a breakdown to help you visualize its role:
🧮 NASDAQ's Market Share Snapshot
NASDAQ Composite Index includes over 3,000 companies, mostly tech-heavy.
Market capitalization of NASDAQ-listed companies is estimated to be around $25–30 trillion, depending on fluctuations.
Relative to the total U.S. stock market, which is valued at roughly $50–55 trillion, NASDAQ accounts for about 45–55% of the total market cap.
This dominance is largely driven by mega-cap tech firms like Apple, Microsoft, Amazon, and Nvidia—all NASDAQ-listed and collectively worth trillions.
If you're thinking about investing or analyzing market exposure, NASDAQ’s weight means it heavily influences index funds like the QQQ ETF and plays a central role in growth-oriented portfolios.
Would you like help comparing NASDAQ ETFs or exploring sector-specific investment ideas?
Is this growth in importance recent; what was NASDQ's share in 2019?
Great question—yes, NASDAQ's rise in market dominance has accelerated in recent years, especially due to the tech sector's explosive growth.
📈 NASDAQ's Market Share in 2019
While exact percentages vary depending on how you define "market share" (volume vs. market cap), in 2019, NASDAQ represented a smaller slice of the total U.S. market compared to today. Back then:
NASDAQ Composite returned 37.9% in 2019, reflecting strong performance.
Its market capitalization share was estimated to be around 35–40% of the total U.S. equity market, compared to roughly 45–55% today.
🚀 Why the Growth Since 2019?
Tech boom: Companies like Apple, Microsoft, Nvidia, and Tesla saw massive valuation increases.
COVID-era digital acceleration: Remote work, e-commerce, and cloud computing surged.
Retail investor influx: Platforms like Robinhood made NASDAQ stocks more accessible.
So yes, NASDAQ’s importance has grown substantially since 2019, driven by structural shifts in the economy and investor behavior.
Want to dig into how this shift affects index investing or ETF allocations?
Is this kind of growth sustainable, or have we seen the bulk of it?
📊 NASDAQ’s growth has been impressive—but is it sustainable? The short answer: yes, but with caveats. Let’s break it down.
🚀 What’s Driving NASDAQ’s Growth?
NASDAQ’s rise has been fueled by:
Tech sector dominance: Companies like Apple, Microsoft, Nvidia, and Amazon continue to lead global innovation.
Digital transformation: AI, cloud computing, and fintech are reshaping industries.
Strong earnings: In Q1 2025, Nasdaq Inc. reported 11% revenue growth and 24% non-GAAP EPS growth, with SaaS revenue up 14%.
Investor appetite: Index inflows totaled $86 billion over the past year.
🔮 Outlook for Sustainability
According to forecasts and executive commentary:
Nasdaq’s leadership believes it is well-positioned for sustainable growth through 2025 and beyond.
Analysts expect continued gains, with the NASDAQ Composite projected to rise steadily through 2026, potentially reaching values above 32,000.
Growth will likely be more moderate, not explosive—think mature expansion rather than hypergrowth.
⚠️ Risks to Watch
Valuation pressures: Many NASDAQ stocks trade at high multiples.
Interest rate sensitivity: Tech stocks tend to react strongly to rate hikes.
Regulatory headwinds: Antitrust scrutiny and data privacy laws could impact major players.
🧠 Bottom Line
We may have seen the bulk of the hypergrowth, but NASDAQ’s structural advantages—tech leadership, innovation, and global relevance—suggest it’s far from done. Expect steady, resilient growth, especially in areas like AI, cybersecurity, and fintech.
Want to explore which sectors or ETFs might benefit most from this next phase?
Explain the '32,000' value to me...
Absolutely—let’s unpack that NASDAQ Composite 32,000 forecast so it makes sense in context.
📈 What Does “NASDAQ at 32,000” Mean?
The NASDAQ Composite Index is a market-cap weighted index that tracks over 3,000 stocks listed on the NASDAQ exchange, heavily tilted toward tech and growth companies. When analysts forecast it reaching 32,000, they’re predicting:
A future level of the index, not a dollar value.
That the combined market capitalization of its constituents will rise enough to push the index to that number.
A significant increase from current levels (as of September 2025, it's hovering around 15,000–16,000), meaning a doubling in value over the next few years.
🔮 Where Does This Forecast Come From?
According to LongForecast, projections for mid-to-late 2026 show the NASDAQ Composite potentially reaching values between 32,000 and 34,000, depending on market conditions. These forecasts are based on:
Expected growth in AI, cloud computing, biotech, and semiconductors.
Continued strong performance from mega-cap stocks like Apple, Microsoft, and Nvidia.
A relatively stable macroeconomic environment with manageable interest rates and inflation.
⚠️ What to Keep in Mind
These are speculative forecasts, not guarantees.
A rise to 32,000 would imply very strong investor confidence, robust earnings growth, and minimal economic disruption.
If realized, it would mark one of the most aggressive bull runs in NASDAQ history.
So, “NASDAQ 32,000” is essentially a bullish bet on the future of innovation. If you’re investing with that target in mind, it’s worth exploring which sectors or ETFs are best positioned to ride that wave.
Want help identifying those high-growth areas or building a strategy around this forecast?
Is buying into a NASDAQ market fund the same as buying into NASDAQ capitalization?
Not quite—they’re closely related, but buying into a NASDAQ market fund is not the same as owning the full NASDAQ capitalization. Let’s break it down:
🧠 What You’re Actually Buying
When you invest in a NASDAQ market fund (like the Invesco QQQ ETF or a NASDAQ Composite Index fund), you’re buying a slice of the index, not the entire market capitalization. Here's what that means:
🧩 Key Differences
Weighting: Funds are market-cap weighted, so you own more of Apple, Microsoft, Nvidia, etc., and very little of smaller companies.
Coverage: Some funds track the NASDAQ-100 (top 100 non-financial firms), not the full Composite Index.
Liquidity & Access: You’re not buying direct ownership in every company—just exposure via the fund’s structure.
🧮 Example
If NASDAQ’s total market cap is $30 trillion, and you invest $10,000 in QQQ:
You own $10,000 worth of exposure, not a proportional share of the $30 trillion.
Your investment mirrors the performance of the index, not its full value.
🧠 Bottom Line
Investing in a NASDAQ fund gives you performance exposure, not ownership of the entire capitalization. It’s a smart way to ride the index’s growth, but it’s not the same as holding a proportional stake in every NASDAQ-listed company.
Want help choosing between NASDAQ-100 vs Composite funds, or comparing them to S&P 500 ETFs?
So the fund I invest in is what buys Apple stock or whatever??
Exactly! When you invest in a NASDAQ market fund—like the Invesco QQQ ETF or a NASDAQ Composite Index fund—you’re essentially pooling your money with thousands of other investors. That fund then buys actual shares of companies like Apple, Microsoft, Nvidia, and others that are part of the index.
🧠 How It Works
The fund manager (or algorithm, in the case of passive ETFs) allocates money to stocks based on their weight in the index.
For example, Apple might make up 10% of the NASDAQ-100, so 10% of your investment goes toward Apple stock.
You don’t own Apple shares directly, but you own a piece of the fund, which in turn owns Apple shares.
📦 Think of It Like a Basket
Imagine the fund as a basket:
You buy a slice of the basket.
Inside the basket are actual shares of Apple, Amazon, Meta, etc.
As those stocks go up or down, the value of your slice changes accordingly.
🧾 Bonus Insight
Some of the biggest funds holding Apple stock include:
Vanguard Total Stock Market Index Fund (VTSAX) – owns over 463 million Apple shares
SPDR S&P 500 ETF (SPY) – holds about 176 million Apple shares
Invesco QQQ ETF – heavily weighted toward Apple and other tech giants
So yes—your fund is out there buying Apple stock “on your behalf,” giving you exposure without needing to manage individual shares.
Want to peek at the top holdings of a specific fund you're considering? I can pull that up for you.
What if - Heaven help us - Apple takes a nasty hit on tariffs and everyone buys a cheaper phone. Then what? My fund goes down but NASDAQ keeps buzzing because everyone is still buying phones??
Ah, the paradox of index investing in a tech-dominated world. You're absolutely right to ask this—because yes, your fund could take a hit even if the broader NASDAQ keeps humming along.
📉 If Apple Gets Walloped by Tariffs…
Let’s say Apple faces steep tariffs (like the recent 54% on Chinese imports), and consumers pivot to cheaper alternatives. Here's what happens:
Apple’s stock drops: Analysts already downgraded Apple due to weak product innovation and tariff exposure.
Your fund feels it: If you're in a NASDAQ-100 fund like QQQ, Apple might make up 10–12% of the fund. A sharp decline in Apple’s stock drags your fund down.
NASDAQ Composite might stay resilient: Because it includes 3,000+ companies, many of which aren’t Apple. If cheaper phone makers (say, Samsung or Xiaomi) are listed on NASDAQ and surge, they could offset Apple’s decline.
🧠 Why the Index Can Buzz While Your Fund Slumps
Fund concentration: Most NASDAQ funds are top-heavy, meaning they’re dominated by a few mega-cap stocks.
Index breadth: The NASDAQ Composite includes small caps, mid caps, and niche tech firms that might benefit from Apple’s stumble.
Sector rotation: Investors might shift into other tech areas—AI, semiconductors, cloud computing—keeping the index buoyant.
🔍 Real-World Example
In 2025, Apple dropped 9% YTD while the NASDAQ-100 rose 14%. Why? Because Nvidia, Microsoft, and Amazon surged, offsetting Apple’s weakness.
🧾 Bottom Line
Yes—your fund could dip if it’s heavily exposed to Apple, even if the broader NASDAQ thrives. That’s why diversification across sectors and fund types matters. You might want to explore equal-weight NASDAQ ETFs or tech sector funds with broader exposure if you're worried about single-stock risk.
Want help comparing those fund types or building a more resilient portfolio?
What are equal-weight NASDAQ ETFs?
Equal-weight NASDAQ ETFs are a clever twist on traditional index investing—they give every stock in the index the same weight, regardless of size. That means Apple, with its trillion-dollar market cap, gets the same slice of the pie as a much smaller company like Zoom or SiriusXM.
🧮 How Equal-Weight Works
Traditional ETFs (like QQQ) are market-cap weighted: bigger companies dominate the fund.
Equal-weight ETFs rebalance so each company has the same influence—typically around 1% in a 100-stock index.
📦 Example: NASDAQ-100 Equal Weighted Index
This index includes the same 100 companies as the NASDAQ-100, but:
Apple, Microsoft, Nvidia, etc. don’t overshadow the rest.
Smaller companies get more visibility and impact.
The fund is rebalanced quarterly to maintain equal weights.
✅ Pros
Diversification: Reduces concentration risk from mega-cap stocks.
Value tilt: Buys underperformers, sells outperformers—like a built-in contrarian strategy.
Sector balance: Less tech-heavy than cap-weighted versions.
⚠️ Cons
Higher turnover: More frequent rebalancing means higher costs.
May underperform in tech rallies: If Apple and Nvidia soar, equal-weight funds won’t benefit as much.
So if you're worried about one giant like Apple dragging your fund down, equal-weight ETFs offer a more balanced ride. Want help comparing performance or seeing how these funds stack up over time?
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An ETF is an Exchange-Traded-Fund!
* * *
Not all this is just client-driven. Some AIs have been actively looking for financing, and issuing new stock??
You're absolutely onto something—AI companies aren’t just riding investor hype; many are actively shaping their own financial futures through strategic moves like issuing stock, raising capital, and even acquiring other firms.
🧠 AI Companies Seeking Financing & Issuing Stock
Several major players and rising stars in the AI space have been doing exactly that:
NVIDIA: In 2024, it invested $1 billion in AI startups, showing it's not just selling chips—it’s building an ecosystem. While not issuing new stock directly, its valuation surged past $3.28 trillion, giving it massive leverage for future capital raises.
Microsoft & Alphabet: These giants have made strategic investments and partnerships in AI firms, often using equity stakes to deepen their influence.
OpenAI: Though not publicly traded, it's been in talks with investors about raising billions in new funding, and there’s speculation about a future IPO or equity-based expansion.
Palantir & C3.ai: These publicly traded AI-focused companies have issued new shares to fund growth, especially as demand for generative and agentic AI accelerates.
💸 Why It’s Not Just Client-Driven
This wave of financing isn’t just about meeting customer demand—it’s about:
Scaling infrastructure: AI requires massive compute power, which means billions in data center investments.
Staying competitive: With new models and startups emerging constantly, even big players need fresh capital to innovate.
Expanding use cases: From healthcare to autonomous vehicles, AI firms are pushing into new verticals that require tailored solutions—and funding.
🧾 Bottom Line
Yes, some AI companies are behaving like strategic financial operators, not just tech vendors. They’re issuing stock, raising capital, and reshaping industries from the inside out. It’s a sign that AI isn’t just a product—it’s a platform for economic transformation.
Want to explore which of these companies might be ripe for investment—or which ones could be next to IPO?
So it might make sense to find an area of new tech one believes in...
Absolutely—it’s one of the smartest ways to invest with both conviction and resilience. When you find a tech sector you genuinely believe in, you're not just chasing returns—you’re aligning your portfolio with your worldview, your curiosity, and your long-term thesis about how the world is changing.
🔍 Why It Makes Sense
Conviction breeds patience: If you believe in AI, quantum computing, or biotech, you're more likely to hold through volatility.
You understand the narrative: You’ll spot opportunities and risks faster because you’re tuned into the space.
You invest in transformation: New tech isn’t just about gadgets—it’s about reshaping industries, economies, and lives.
🧠 Areas Worth Exploring
Here are a few emerging tech sectors that are attracting serious attention:
🧾 How to Invest with Belief
Start with thematic ETFs: They give you diversified exposure to a sector without needing to pick winners.
Follow industry news and earnings calls: Stay informed so your belief is backed by data.
Consider dollar-cost averaging: Build your position gradually to smooth out volatility.
Belief-driven investing isn’t just smart—it’s energizing. You’re not just watching numbers; you’re watching your ideas take shape in the real world.
Want help narrowing down a sector or building a starter portfolio around your interests?
It really might—and you're not alone in thinking it would be momentous. As of September 2025, OpenAI is actively laying the groundwork for a potential IPO, and the buzz is real.
🚀 What's Happening Behind the Scenes
Restructuring: OpenAI is converting its for-profit arm into a Public Benefit Corporation (PBC), a hybrid model that allows it to pursue profits while staying aligned with its mission2.
Microsoft’s blessing: After months of negotiation, Microsoft—OpenAI’s largest investor—has signed a non-binding agreement that clears the way for this restructuring4.
Valuation: OpenAI is targeting a $500 billion valuation, which would make it one of the most valuable IPOs in history2.
Nonprofit stake: The nonprofit parent would retain 20% ownership, ensuring mission oversight even after going public.
🧠 Why It Matters
An OpenAI IPO wouldn’t just be a financial event—it would be a cultural and technological milestone. It would:
Cement AI’s role as a core economic driver.
Give retail investors a chance to own a piece of the company behind ChatGPT.
Potentially reshape how mission-driven tech firms approach public markets.
⚠️ Still Not a Done Deal
OpenAI’s CFO has said they’re “IPO-ready” but cautious: “You can show up at the altar all ready to go, and if the market’s not ready for you, yeah, you’re just out of luck.”
So yes, it’s very possible—and if it happens, it could be one of the most watched IPOs of the decade.
Want to explore how to position yourself ahead of this, or what other AI firms might follow suit?
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