By Daniel Foelber
Publication Date: 2026-03-07 17:00:00
Key Points
-
The 2026 sector rotation has been swift and decisive, with energy stocks surging while tech stocks fall.
-
Nvidia is worth so much more than leading energy stocks because its profits and growth rate are superior.
-
No matter the sector, investors should focus on high-quality companies that can succeed over the long term.
- 10 stocks we like better than Nvidia ›
Even before factoring in Monday’s monster surge in oil and gas stocks, the energy sector was already up 24.2% year to date compared to just 0.5% for the S&P 500 (SNPINDEX: ^GSPC). Sectorwide underperformance in 2025, paired with rising oil prices and now geopolitical tensions in Iran, are fueling the rally.
But investors may be surprised to learn that energy stocks account for only 3.5% of the S&P 500, whereas Nvidia (NASDAQ: NVDA) alone makes up 6.9%. That means Nvidia is worth more than the combined value of ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and the other 20 or so energy stocks that are S&P 500 components.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Here’s why Nvidia deserves to make up such a large portion of the U.S. stock market, how to think about energy within the context of the broader market, and why energy stocks are still relatively cheap.
Image source: Getty Images.
