AI stocks are massively outperforming the global market: The Bloomberg Global AI index has surged +118% since the start of 2024, to near its all-time high. At the same time, the MSCI World Index has risen +57%, underperforming by 61 percentage points. By comparison, the MSCI Emerging Market Index has soared +70% over this period, to near its all-time high. Since the start of 2024, AI stocks have generated an average annualized return of +38%, double the +19% annualized return of global equities over the same period. The AI index has also significantly outperformed emerging markets, which have delivered an annualized return of +23%. AI stocks have left the rest of the global market far behind.

AI token pricing is collapsing but usage is exploding as reasoning models and agents consume far more tokens per task. That should drive a ton more AI usage across $GOOGL, $MSFT, $META and $AMZN with $NVDA, $AMD and $AVGO powering compute stack while $MU and $SKHY supply memory behind it.

AI model spend is becoming very concentrated. Top 1% of customers account for 46% of all Anthropic spend… You see a similar concentration at the individual company level with users. And those are the ones we trying to solve for by leveraging more cheaper open-weight models.