Apollo Global Management Chief Economist Torsten Slok published new research on Saturday arguing that AI has delivered “zero financial payoff to corporate America outside of tech.” Slok's analysis finds revenue per worker and profit margins rising for the Magnificent Seven but flat for the other 493 S&P 500 companies, despite hundreds of billions of dollars in AI data center spending by major tech firms. The article says overvalued tech stocks could face pressure if AI spending is cut or investors doubt broad economic gains, while Vanguard research is more optimistic about AI adoption across industries. It also notes that a broadly diversified S&P 500 fund could be seen as a “safer” bet than a tech-heavy ETF, citing the Vanguard S&P 500 ETF's annualized return of about 13.8% over five years, including the 2022 bear market when the S&P 500 fell about 18.2%.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Is AI Overhyped? Apollo Economist Sees "Zero Financial Payoff" Beyond Tech Companies
Read the original on Yahoo Finance ↗
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artificial intelligenceS&P 500valuationETF
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/27/2026 | 217.88 |
| Change that session | +0.87% |
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/27/2026 | 721.23 |
| Change that session | +1.27% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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