The gap between AI names and the rest of the market is historic – The Kobeissi Letter
Since the start of 2024, a basket of 42 AI stocks has generated 67% of the S&P 500’s price return.
In other words, those names have contributed +22 percentage points to the index’s +33% gain over this period.
By comparison, the remaining 458 stocks have added +11 percentage points.
just 29% of stocks have outperformed the S&P 500 over the last 3 years, close to the ~25% low recorded during the 2000 Dot-Com Bubble.