Maybe the AI bulls are right: We are early innings in the AI boom, and bubble fears are way overblown.
Sometimes, all it takes to understand a thesis is to see it written out. So thank you, Box (BOX) co-founder and CEO Aaron Levie, for doing just that.
“The compute needed for the stage of AI we’re about to enter is going to be insane. Personal agents, agent swarms defending enterprises, agents that review all of our code for security issues, agents that process nearly all enterprise data in workflows, background agents working on tasks 24/7, and on and on,” Levie said in a new X post.
“This will take a mix of inference volume that is going to keep growing by orders of magnitude, as well as infrastructure that agents need alongside the tokens,” he continued. “They need computers, networking, file systems, and so on. We’re only in the early stages of what this buildout is going to look like.”
Levie was responding to a fellow tech exec who was calculating the vast computing needs that Meta’s (META) new Muse AI agent would require to reach its potential.
Already three days into the trading week, it has been headline-making for some big, noteworthy AI-centric tech names as investors stick with the hot hand.
Nvidia (NVDA) touched a record high. Rival AMD (AMD) just hit a record high. Marvell Technology (MRVL) lifted its revenue outlook by billions of dollars and struck a bullish note on the size of its long-term total addressable market.
And now, the S&P 500 (^GSPC) has never been more concentrated in just three stocks than it is today, with Nvidia, Apple (AAPL), and Microsoft (MSFT) representing over 21% of the index, per data from Creative Planning.
The importance of these three stocks to the S&P 500 has never been greater.
231.33 -6.14 (-2.59%)
As of 2:28:29 PM EDT. Market Open.
NVDA AAPL MSFT
Only IBM (IBM), AT&T (T), and ExxonMobil (XOM) could hold a candle to the three tech stalwarts of today: In the mid-1980s, those three industrial giants at their peak made up 13.4% of the S&P 500.
“The AI Revolution is the largest technology buildout in history, and it is no longer a story about one sector but about the capital, power, and policy of the entire economy,” Yorkville Ives partner Dan Ives said.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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