Not just because they are the biggest. State Street’s SPY holdings listed NVIDIA, Apple, and Microsoft as the fund’s three largest positions on October 1, 2026. Their combined 21.51% weight is a meaningful concentration, but size alone does not establish that the stocks are overvalued or that selling them now would improve your returns. Review your total exposure, each holding’s prospects and valuation, your time horizon, and the tax cost before deciding whether to sell or rebalance.
Which stocks are the S&P 500’s top three right now?
In State Street’s SPY holdings snapshot dated October 1, 2026, NVIDIA represented 8.45% of the fund, Apple 7.30%, and Microsoft 5.76%. Those reported weights add to 21.51% of SPY. They describe one fund’s holdings on one date—not a permanent ranking or a forecast of future weights.
The dates and measures matter. S&P Dow Jones Indices’ S&P 500 characteristics snapshot dated August 31, 2026 reported a 37.8% weight for the index’s ten largest constituents and an 8.1% weight for its largest constituent. The index page named NVIDIA, Apple, and Microsoft among its largest constituents, but that snapshot is a month earlier than SPY’s. The two sources do not provide a same-day comparison.
The S&P 500 is float-adjusted market-cap weighted: companies with greater market value have greater index weight. That design means large, successful companies can become a larger part of the index as their market values rise. Concentration is a portfolio characteristic to understand, not by itself a sell signal.
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What does the available evidence say about each stock?
The information available here does not establish a comparable current valuation for all three companies. It would be misleading to rank them as cheap or expensive, or to make a sell call based on one company’s results. The comparison below separates the dated SPY weights from the operating details that are actually available.
| Company | SPY weight, Oct. 1, 2026 | Operating evidence in the available sources | Comparable current valuation |
|---|---|---|---|
| NVIDIA | 8.45% (State Street, SPY holdings) | NVIDIA reported fiscal Q2 2027 revenue of $96.2 billion, up 106% year over year, and data center revenue of $89.0 billion, up 117%. The quarter ended July 26, 2026; NVIDIA announced the results August 26. (Company results.) | Not stated for a comparable three-company valuation in the available sources. (NVIDIA results and SEC filing.) |
| Apple | 7.30% (State Street, SPY holdings) | Not stated in the available sources. | Not stated for a comparable three-company valuation in the available sources. |
| Microsoft | 5.76% (State Street, SPY holdings) | Not stated in the available sources. | Not stated for a comparable three-company valuation in the available sources. |
NVIDIA’s figures are growth evidence, not proof that its shares are attractively priced. In its August 26 results release, CEO Jensen Huang said, “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.” That is Huang’s company statement about AI demand, not an independently verified forecast or a conclusion about the stock’s future return. See NVIDIA’s fiscal Q2 2027 results.
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NVIDIA’s customer mix is another factor to weigh. Its Form 10-Q for the quarter ended July 26, 2026 reported that one direct customer accounted for 16% of second-quarter revenue. In the first half of that fiscal year, three direct customers accounted for 16%, 15%, and 13% of revenue. These disclosures concern NVIDIA only; they should not be applied to Apple or Microsoft.
Does index concentration mean you should rebalance?
It can be a reason to check whether your portfolio still matches your intended risk level. S&P Global Market Intelligence described concentration among AI-linked mega-cap stocks as a structural risk-management consideration for investors with benchmark exposure in its August 25, 2026 analysis. That is a discussion of concentration risk, not a prediction that these shares must fall.
Start with your overall exposure, not only the number of shares you own directly. If you hold SPY or another fund tracking a broad U.S. large-cap index as well as individual shares, you may have exposure through both. The SPY weights above can help show how one fund’s holdings were distributed on October 1, but your own percentage exposure depends on your holdings and their values.
Rebalancing means adjusting positions when they no longer fit your chosen allocation. That is different from trying to predict the market’s next move. An investor who wants to reduce concentration could consider a partial sale or adjust future contributions, for example, rather than treating “sell everything” and “do nothing” as the only options. Whether any particular adjustment is appropriate depends on the investor’s plan and circumstances.
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How to decide whether to sell, hold, or trim
- Calculate your look-through exposure. Add the value of any direct NVIDIA, Apple, and Microsoft shares to the exposure you have through index funds. Use current statements and holdings; the October 1 SPY figures are a dated reference, not your personal allocation.
- Set a target allocation before choosing a trade. Decide how much exposure to an individual company or group of large companies fits your investment plan. Compare that target with your actual portfolio rather than reacting to a headline or a recent price move.
- Assess each company on the same measures. Consider price relative to earnings and cash flow, the growth expectations reflected in that price, the durability of revenue drivers, and company-specific risks. The information cited here supplies recent operating results and a customer-concentration disclosure for NVIDIA, but not a complete, comparable valuation or operating comparison for all three.
- Match the decision to your time horizon and risk tolerance. Ask whether you can tolerate the possibility that a concentrated position loses value, and whether your reason for owning it still applies. A near-term need for cash and a long-term investment goal may lead to different choices.
- Check account and tax consequences before placing an order. A sale can have different consequences depending on whether the shares are held in a taxable account or a tax-advantaged account, as well as on your individual circumstances. Review your records and consult a qualified tax or financial professional if the consequences are unclear.
What the evidence can—and cannot—settle
The dated holdings establish that NVIDIA, Apple, and Microsoft were SPY’s three largest positions on October 1, 2026, and that they together made up 21.51% of the fund on that snapshot. The index’s top-ten weight was 37.8% on August 31. NVIDIA had very rapid reported revenue growth and disclosed meaningful direct-customer concentration. None of those facts, alone or together, determines whether an individual investor should sell, hold, or trim.
A useful decision is therefore a portfolio decision, not a blanket call on all three stocks. Compare each holding’s valuation and business outlook using current, consistent information, then weigh the resulting exposure against your goals, time horizon, risk tolerance, and tax situation.
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