AI Boom Rebuilds the Stock Marketa16z’s State of Markets II report says technology generated about 76% of S&P 500 profit growth in 2026. Capital is shifting from software toward physical infrastructure.
Big Tech profits are funding AI computing capacity, increasingly with debt. Demand is strong enough for older Nvidia A100 GPUs to retain high rental prices. New chips are not pushing out the old ones yet.
Adoption is still early. Almost 30% of S&P 500 companies report a measurable AI effect, but only about 2% track a specific metric. In spring, only about 2% of US households paid for an AI service. About 75% of public software companies are profitable, but only 30% grow faster than 20% a year.
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