The US Tech 100, also called the Nasdaq-100, is a stock market index of the largest non-financial companies. These companies are generating billions. Businesses like Apple, Adobe, Microsoft, Intel, and many more consistently dominate the stock market index.
Tech stocks and the US Tech 100 are, without a doubt, the backbone of modern digital investment. Read on to find out why.
Tech Stocks’ Dominance in Modern Markets
Technology stocks are the backbone of modern equity markets.
Mega-cap tech companies such as NVIDIA, Microsoft, and Apple account for a disproportionate share of stock market value and returns. Their outsize influence is massive. Analysts have observed that the US Tech 100 is “dependent on technology stocks to drive growth.”
These companies are widely regarded as “the backbone of the modern economy, leading in AI, cloud computing, and digital services,” explaining why investors have gravitated toward them.
And accessibility is another driver of dominance. Companies such as Exness provide secure access to capital markets with institutional-grade liquidity and proprietary technology.
The Nasdaq-100 as a Technology Benchmark
The US Tech 100 index tracks the largest 100 non-financial companies listed on Nasdaq. This index is a bellwether for technology stocks. Investors monitor the Nasdaq-100 closely because of its tech focus and historical growth. Over the past decade, this tech-heavy index has consistently outperformed broader market indices.
For example, in 2023, the Nasdaq-100—tracked by the QQQ ETF—shot up 54.7%. That’s more than double the 26% gain of the overall US market. And in 2024, the Nasdaq-100 index increased by 25.9%.
The monumental performance potential highlights how the Nasdaq-100has become a benchmark for innovation-driven growth. It attracts investors wanting exposure to the digital economy’s leaders every day.
Mega-Cap Tech Giants Driving Index Performance
The influence of the handful of tech giants we’ve mentioned on the US stock indices is difficult to overstate. By August 2025, the Magnificent Seven—Apple, Microsoft, Amazon, Alphabet (Google), Meta, Nvidia, and Tesla—together controlled 43.6% of the Nasdaq-100 total market value as of the latest July 2025 figures. That’s up 3.4% over the last 10 years.
In stock market terms, that’s a relatively steep rise, although they had controlled almost the majority of the market for many years before that. The rest of the divide is between the 93 other companies that will likely never turn into the ‘Magnificent Eight.’ It doesn’t have the same ring to it.
The dominance of these tech behemoths means they have an outsized impact on index performance. When they turn to a bullish market sentiment, the entire market tends to rise. When their market sentiment turns bearish, they bring broad indices down. This dynamic solidifies the view that mega-cap tech stocks are the de facto backbone of US equity markets.
Robust Returns from Q4 2024 Through 2025
Tech stocks’ recent financial performance has reinforced their central role in modern investing.
In 2024, technology-heavy indices posted incredible returns. The Nasdaq Composite Index jumped nearly 29.6% for the year, outpacing the S&P 500’s strong 25% gain.
Every member of the Magnificent Seven recorded double-digit percentage increases in 2024, with Nvidia leading with a staggering 171% stock price surge thanks to the artificial intelligence boom. Now, Nvidia continuously leads the Nasdaq-100, up 32.47% year-to-date with a current price of $183.22 per stock.
This momentum carried into 2025. As of mid-October 2025, the Nasdaq-100 was up about 18% year-to-date overall. That’s outperforming the S&P 500’s roughly 13% price return in the same period.
Tech indices consistently rebound from downturns and reach new highs, making them a trusted modern investment.
Innovation and Digital Trends Underpinning Tech Growth
Tech stocks thrive on the market’s innovation and economic transformation. The corporate investments in cloud computing, artificial intelligence (AI), and digital platforms have propelled the revenue and earnings growth of leading tech firms.
For example, in 2024, spending on AI infrastructure became a dominant trend in business. McKinsey and Company recently called it the $7 trillion race to scale data centers so the industry can keep up with the astronomical demand for AI services. And US technology companies were the primary beneficiaries of this wave.
The semiconductor industry also saw standout results thanks to the surging demand for AI-related chips, further increasing the tech sector’s performance.
But looking more broadly, tech companies innovate rapidly. The ongoing digitization and automation of industries suggest a sustained tailwind, and investments through the Nasdaq-100 are a logical move for modern investors. As Fidelity’s 2025 outlook noted, the tech sector remains well-positioned, with companies continuing to innovate as digital technology becomes more integral to work and life.
Allocating Tech in Portfolios
There’s no denying that tech stocks have a superior growth profile. They’ve quickly become core holdings for investors and institutions. Whether through stock picking or passive index investing, market participants consistently allocate significant capital to tech stocks.
One popular investment route is the Invesco QQQ Trust. It’s an ETF tracking the Nasdaq-100 index, which by late 2025 managed roughly $390 billion in assets. This tech-heavy fund has consistently outperformed broader indices over the past decade. For example, the QQQ returned over 54% in 2023 compared to about 26% for the overall market.
For beginners, a somewhat less technical method is copy trading. The explanation, according to Exness, is that accounts automatically replicate the trades of another, more experienced trader. We understand the logic. It does save time and potentially profit by following the successful trades of an experienced trader.
Even broad index funds like the S&P 500 are effectively tech-centric now. As of mid-2025, the top 10 S&P 500 constituents were mostly Big Tech names, accounting for nearly 36% of that index. The prevalence of tech in benchmarks and its historical track record have led investors to embrace the sector as a pillar of their long-term strategies.
Opportunities and Risks in a Tech-Centric Market
Tech stocks will remain the digital backbone of investing. There’s no doubt about it, especially AI.
Speaking positively, forecasts state the Magnificent Seven’s aggregate earnings should rise about 12.6% in 2025. A bit steadier after the soar of over 40% in 2024. These companies lead in high-growth areas such as AI and cloud computing, suggesting they will drive a substantial share of future market gains.
That said, the dominance of a few giants also creates concentration risk. The Nasdaq-100’s 40%+ heavy tilt toward seven names means that market performance is unusually dependent on a small group. Analysts warn that this level of reliance cuts both ways. Any drop in Big Tech could weigh heavily on portfolios. For investors, the task is to balance the clear opportunities with risk management.
The US Tech 100 is the digital backbone of modern investing. It might still be a volatile market, as are any stocks and financial investments of this nature, but it’s one of the most reliable. They form an excellent part of an investment portfolio.
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