Beware of the US stock boom.

Let's be realistic...More than half of the growth of the S&P 500 since 2023 has come from just 7 companies: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. Collectively known as the Magnificent Seven, are seen as especially well positioned to prosper from the AI revolution. But will they or is another dot com boom and bust in the making? 

"The so called capability-reliability gap might explain why generative AI has so far failed to deliver tangible results for businesses that use it. When researchers at MIT recently tracked the results of 300 publicly disclosed AI initiatives, they found that 95 percent of projects failed to deliver any boost to profits. A March report from McKinsey & Company found that 71 percent of  companies reported using generative AI, and more than 80 percent of them reported that the technology had no “tangible impact” on earnings. In light of these trends, Gartner, a tech-consulting firm, recently declared that AI has entered the “trough of disillusionment” phase of technological development."

From a recent September 7th daring article in The Atlantic Magazine by Rogé Karma

Paul Renaud

Beyond Thaistocks.com