Amid the global race to develop and deploy artificial intelligence (AI), the US stock market is showing just how much this technology is reshaping corporate fortunes. A small group of AI stocks is driving the bulk of market gains, earnings growth and investment.
According to The Kobeissi Letter, a financial markets commentary and research platform, just 42 AI stocks have generated 67% of the S&P 500's price return since the start of 2024. These stocks have contributed 22 percentage points to the index's total gain of 33% over the period.
The other 458 stocks in the benchmark have contributed just 11 percentage points.
The gap is just as striking when it comes to earnings. The 42 AI stocks have accounted for 58% of the S&P 500's earnings growth since the start of 2024, The Kobeissi Letter said.
The gap between AI names and the rest of the market is historic: