The US is innovating at an unprecedented rate 🚀
We talk about global competition, but the data tells a much more lopsided story. Check these numbers: 1. The Profit Gap The US has 62 technology companies netting over $1B in annual profit. China? Only 15. That’s a 4x lead over the world’s second-largest economy. 2. The Global Comparison The US has 21 more elite tech firms than China, Japan, Taiwan, and the Eurozone combined. Read that again. One country is out-scaling entire continents. 3. The Leaderboard Of the world’s 10 largest companies, 8 are US tech firms. Of the world’s 10 most innovative companies, 8 are US-based. "Dominance" is no longer the right word. We are witnessing a level of industrial concentration we’ve never seen before. The US isn’t just participating in the future. It’s architecting it. Is the gap between the US and the rest of the world becoming unbridgeable? Source: The Kobeissi Letter
Software Stocks are now underperforming Semiconductors by the largest margin in more than 23 years
Source: Barchart
In case you missed it...Tech may finish the year with a lower Forward P/E than it began the year...
Tech bubble? Are you sure? Source: Seth Golden @SethCL Factset
$IBM CEO says that at today’s costs it takes about $80B to build & fill a 1 GW AI data center
So the ~100 GW of announced capacity implies roughly $8T of capex & “no way you’re going to get a return on that,” since you’d need “about $800B of profit just to pay for the interest” Source: Wall St Engine
Overall Tech credit Spreads continue to trade wide to the overall IG credit market...
Source: zerohedge
🚀 Big Tech Is Carrying the Entire Stock Market — Literally
Alphabet ($GOOGL) has been the single biggest driver of the S&P 500 this year… accounting for 19.4% of the index’s entire YTD gain. That’s what happens when you add $1.3 trillion in market cap in 11 months. Right behind it? Nvidia ($NVDA): +16.0% contribution (+$1.05T) Broadcom ($AVGO): +$520B Microsoft ($MSFT): +$380B Together with the rest of the mega-cap giants, the top 10 stocks now make up 59.4% of the S&P 500’s total gain this year. Which means the other 490 companies combined contributed just 40.6%. Source: The Kobeissi Letter, econovisuals
Samsung bets big on AI 🇰🇷 Korean tech giant
Samsung just announced plans to buy and deploy 50,000 Nvidia GPUs — a massive move aimed at supercharging its chip manufacturing for mobile devices and robotics. 💡 The partnership is another win for Nvidia, whose GPUs remain the gold standard for building and deploying advanced AI systems. 🔧 Samsung also confirmed it’s working with Nvidia to optimize its 4th-gen HBM (High Bandwidth Memory) for next-generation AI chips — a move that could reshape the global AI hardware landscape. 👉 The AI arms race just got another heavyweight upgrade.
Cisco peaked at 4% of U.S. GDP.
Nvidia is currently 16% of U.S. GDP. Source: Spencer Hakimian @SpencerHakimian
