I’m more talking about what the data centers are being built for which is the ai bubble. Data centers are real things, but the tech theyre being scaled for isnt proven yet, so to have 99.9% of our growth coming from that one thing while literally everything else stagnates is… not good.
Only 8 companies, which are all tech stocks fueling the ai bubble have contributed 70% of the s&p 500s growth this year.
“Through July, the information technology sector, led by Nvidia, Microsoft, Broadcom, Palantir Technologies and Oracle, accounted for almost 54 percent of the S&P 500’s 8.6 percent total return, according to
Howard Silverblatt, a senior index analyst for S&P Dow Jones Indices. The communications services sector, to which Meta, Netflix and Amazon belong, was responsible for another 15.4 percent of the S&P 500’s return. Between these two tech sectors, that’s almost 70 percent of the total return of the entire index.
The market looks even more top-heavy when you examine individual stocks. Nvidia is the big gorilla, accounting for 26.2 percent of the S&P 500’s total return. And here are the next four stocks:
- Microsoft, 21.6 percent of the S&P 500’s total return through July.
- Meta, 9.8 percent.
- Broadcom, 8.3 percent.
- Palantir, 4.5 percent.
If anything, these statistics understate Nvidia’s role as a pillar of the market. The company is both the crucial player and leading beneficiary of the race to build advanced, generative artificial intelligence — A.I. that one day will be superior, in at least some respects, to human intelligence. An arms race is already underway. Alphabet, Microsoft, Meta and Amazon have announced, among them, plans for $400 billion in capital expenditures this year, much of it on A.I. infrastructure.”
fortune.com
