The world’s most crowded trade
This afternoon’s first-quarter results from Nvidia are unlikely to cool the artificial intelligence frenzy. In nominal terms, net income almost certainly grew to a level no public company has ever surpassed. But the chipmaker’s dazzling numbers—and the reaction felt across asset classes—will also illuminate a risk that ought to concern investors and businesses far beyond Silicon Valley: the sheer concentration of global wealth in American technology stocks, and the exposure of the rest of the world to any stumble. Start with scale. American equities are now worth—on paper, at least—$76trn, an amount approaching 70% of world output*. A decade ago...