S&P 500 AI Strategy Underdelivery
Poor execution of AI strategy announcements with vague promises and weak governance oversight causes S&P 500 companies to underperform their sector benchmarks
Too little corroboration in the last 3 days to call a trend (4 articles). Watching for it to gain traction.
"When enormous mark-to-market investment gains recorded by Alphabet and Amazon are removed, however, the picture changes significantly. Without those gains, S&P 500 earnings growth would be about 33%, according to Tajinder Dhillon, head of earnings research at LSEG."
"Goldman Sachs strategists said this month that AI infrastructure stocks account for roughly a third of S&P 500 earnings per share growth for the second quarter. Excluding those gains, the latest estimate for S&P 500 second-quarter profit growth would be 33%, according to Tajinder Dhillon, head of earnings research at LSEG."
"As of July 2026, AI-linked companies account for 62.04% of the S&P 500's total market capitalisation. This means this selloff has the power to shake the entire market, not just chipmakers."
"companies in Tier 3 lost 2.2% alpha on average over the same period. That's a 13-point gap between the strongest communicators and the weakest."