SPY soon to have NVDA as its largest holding by weight, surpassing MSFT.

This is interesting and food for thought. I’m not sure how I feel about SPY lifting NVIDA to its number 1 position given how little diversified the company is at this point. I would not put all my eggs in one basket and as of yesterday NVDA is 7.12% of SPY by weight, trailing close behind MSFT which leads at 7.19%. For those of you not following SPY, this is a BIG jump over the past few months. For some of us holding SPY long-term I’m not exactly sure if this is good news. I was happy with NVDA being number 4 or 5 months ago, behind behemoths more diversified like Apple or Google. Thoughts? Is every long-term SPY holder happy about this?

Clarification- I know exactly how ETFs like SPY operate and how we got here.