AI: In Everything Everywhere All At Once
If inflation was the word investors feared in ’23, AI was the word they couldn’t get enough of in ’24, as the hype for generative AI surged, reached fever pitch, and then got a bit louder. The major beneficiary was, of course, big tech, and America now has 8 stocks with a market cap of more than $1 trillion — or, the BATMMAAN stocks.
It’s hard to overstate how much influence these companies have. You’d be hard-pressed to find many people in America who don’t interact with Meta’s social media platforms, Apple’s phones, Tesla’s cars, Google’s search engine, Microsoft’s software, anything with an Nvidia or Broadcom chip in it, or Amazon’s e-commerce operation on a regular basis. Collectively, they’ve gained $6.2 trillion in value this year, representing 12% of the S&P 500’s revenue, 26% of its profit, and 34% of its weighting.
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