Quick Read – Apollo’s Torsten Slok finds Magnificent Seven revenue per employee surged 20% to $270,000 since 2023, while Russell 2000 firms dropped 14% to $122,000. – Magnificent Seven profit margins are expanding while the other 493 S&P 500 firms see none, suggesting AI…
ending isn’t converting to broader profitability. – Artificial intelligence has become the defining investment theme of the decade. Trillions of dollars have flowed into data centers, semiconductors, cloud infrastructure, and software
The stock market has rewarded companies tied to the AI boom with soaring valuations, while the largest technology firms continue to post eye-catching revenue growth. Yet beneath the surface, a less encouraging story is emerging. The gains from AI appear highly concentrated among a handful of mega-cap companies.
While investors have been told that AI would eventually lift productivity across the entire economy, the latest data suggests that trickle-down effect has yet to arrive. In fact, one disturbing statistic points to a widening divide between the market’s biggest winners and everyone else. The Productivity Gap Is Growing, Not Shrinking According to a recent analysis from Apollo Global Management Chief Economist Torsten Slok, revenue per employee at the Magnificent Seven has climbed to roughly $270,000, the highest level in at least three-and-a-half years.