New York, Jul 15 (IANS): The Nasdaq-100 index is getting a fresh look, the media reported.

The index comprises 100 of the largest non-financial companies listed on the Nasdaq and the popular Invesco QQQ exchange-traded fund tracks the index, CNN reported.

Seven companies listed in the Nasdaq-100 accounted for roughly 51 per cent of the index as of June 3, according to a note by Louis Navellier, chairman of Navellier & Associates.

The Nasdaq is looking to fix that problem -- without changing any of the stocks in the index, CNN reported.

Those top seven stocks, Amazon, Apple, Alphabet, Meta Platforms, Microsoft, Nvidia and Tesla, dubbed by some the 'Magnificent Seven', have skyrocketed this year on artificial intelligence buzz.

They have also driven the lion’s share of the market’s rally this year, though the market’s run has widened in recent weeks to include a more diverse basket of stocks, CNN reported.

Nvidia shares have surged about 215 per cent for the year, Apple jumped 47 per cent and Microsoft gained 43 per cent.

Nvidia reached a $1 trillion market cap earlier this year, while Apple topped a $3 trillion market cap last month.

The huge gains mean that these big tech stocks have become bloated in some indexes, which are often weighted by market capitalisation.

That can pose a problem to investors, since it leaves the market vulnerable to large swings driven by just a handful of companies, CNN reported.

Donald Calcagni, chief investment officer at Mercer Advisors, says investors should be careful when examining an index like the Nasdaq-100’s performance, especially when considering its run is highly concentrated in just a handful of stocks with sky-high valuations, CNN reported.

“Investors should really reassess what’s in their portfolio -- why is it in their portfolio? And are they comfortable with the risks that they’re taking?” asked Calcagni.

The tech-heavy index will undergo a “special rebalance” in just a couple weeks, according to Nasdaq.