So far, the AI story shows up only in the balance sheets of the Mag 7.

Revenue per employee and margins keep climbing there & the rest of the market: Margins flat, revenue per head among small caps actually declining.
The productivity boost remains a concentration story, not a broad-based phenomenon, and you can see it in the market's performance: record highs in the Dow, S&P, and Nasdaq while only Tech and Energy rise and 9 of 11 sectors fall.
Textbook picture of narrow breadth: the index stays alive because a handful of megacaps mask the majority of weakening individual names.
Two ways to read that:
> Bearish: narrow breadth means a more fragile market. AI capex spending may be masking broader underperformance and macro headwinds; once the hyperscaler/Mag 7 support cracks, the market cracks with it.
> Bullish: AI just takes time to show measurable effects. Once it really drives efficiency, revenue, etc. higher across all industries, those 9 of 11 sectors are deeply undervalued.
As I mentioned in yesterdays article, I personally take a hybrid approach: short-term trades within the narrow selection of winners, while hunting for long-term entries in strong companies with a moat across the remaining 9 sectors.