AI stocks face litmus test in 2027
The San Francisco Fed president argues that businesses are spending and preparing for the AI boom, but productivity gains have yet to materialize.
The biggest AI companies are driving the market, with the Magnificent 7 making up 34.8% of the S&P 500 in May 2026.
Micron Technology recently topped a $1 trillion valuation after soaring 780% in nine months, while Nvidia stock is trading at over 37 times earnings.