AI Stocks Drive 67% of S&P 500 Gains
Since the beginning of 2024, the vast majority of market gains have relied on a small number of artificial intelligence companies.
As the global artificial intelligence race continues unabated, U.S. stock market data reveals the massive impact of technology on corporate earnings.
The Impact of Artificial Intelligence on the Market
The globally conducted artificial intelligence development and deployment race is radically altering the financial destiny of companies in the U.S. stock markets. Developments shaped around this technology continue to transform market dynamics.
Major Share in the S&P 500 Index
According to information shared by The Kobeissi Letter, since the beginning of 2024, just 42 artificial intelligence stocks have single-handedly generated 67% of the S&P 500 index's price return.
These artificial intelligence stocks contributed 22 percentage points to the index's total 33% increase recorded during this period. Meanwhile, the remaining 458 stocks in the index contributed only 11 percentage points.
Earnings and Investment Growth
These 42 artificial intelligence stocks have accounted for 58% of the S&P 500's total earnings growth since the beginning of 2024. Additionally, they have shouldered a massive 81% of capital expenditures and R&D growth.
Historical Comparisons and Underperformance
Over the past three-year period, only 29% of stocks outperformed the S&P 500 index. This ratio remains very close to the historical low of approximately 25% recorded during the Dot-Com Bubble in 2000.