Alphaville has already highlighted how much The AI craze has contributed to the US stock market’s 2023 earnings. SocGen is now arguing that even those estimates understate the impact.
French bank analysts find that without earnings from stocks that are possible AI winners, the S&P 500 would now be down 2 percent this year, instead of 8%.
It’s not immediately clear from the note how SocGen ranks “AI Boom stocks,” but we’re guessing that includes the likes of Nvidia, Microsoft, SalesForce, and Alphabet. Here’s SocGen’s Manish Kabra, with our emphasis:
The AI boom and hype is strong. So strong that without popular AI stocks, the S&P 500 would be down 2% this year. Not +8%.
Our update on the AI sentiment news indicator continues to grow exponentially and larger than we first reported on it a few weeks ago.
While AI as a theme has been with us for a while and last year we suggested extending SG Robotics and AI Equity as a secular theme, it is difficult to fight against a very loud clamor in the very short term.
We don’t want to sound like Luddites, But . . .
Further reading:
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