Accenture and Wolters Kluwer benefit massively from cheaper AI tokens and margin gains as they deploy AI. Their knowledge costs rank among the highest relative to COGS, but regulatory capture, reputation and sticky customers keep revenue broadly intact. Neither shows clear signs of slowing growth; Accenture guided to high-single-digit revenue growth from 2029. Despite enormous terminal-value compression, an unwinding AI-infrastructure trade could bring a sizeable rerating if fundamentals hold. … Show more

European banks could see an incredible long-term market-cap rerating as AI cuts expensive business lines. They trade below book value and have substantial distribution to captive customers; Barclays' announced AI-linked job cuts illustrate the cost opportunity. x.com 

Rising yields are winning over the AI benefit for small-company stocks for now. Scott Bessent cited record tax ID applications from small AI companies as evidence that AI enables lean startups, consistent with the earlier catch-up case, but small-company shares have entered a correction under rate pressure. x.com 

Usage-driven AI stocks are less exposed to frontier-model companies as the AI trade separates winners from losers. All rose, all will fall, and only some will recover; favor usage-driven over frontier-biased stocks. DigitalOcean is GAAP profitable; its token usage is a nonlinear revenue proxy. SiTime is GAAP profitable; robotics, defense and self-driving are each growing 50% year over year. CrowdStrike and Rubrik also do not rely on frontier models, though valuation is a concern. x.com  x.com 

SoftBank, Alphabet, Amazon, SK hynix, Nvidia and TSMC are not too late to buy: most trade cheaper on forward P/E than in April 2025 despite a 254% average gain. Models are about twice as intelligent since then, agentic AI is just taking off and robotics, which extends AI into physical work, has barely started. Goldman Sachs estimates AI agents could lift monthly token use 24-fold from 2026 to 2030, to 120 quadrillion. Some of the best-positioned names still trade below the market multiple. x.com  … Show more

Companies using AI to cut costs and expand margins are underpriced, and that efficiency trade is the same as the buildout trade because they all buy compute. AI margin gains show up in gross margin and headcount first. ServiceNow runs agentic AI internally, Salesforce grows revenue without headcount, Amazon sells compute and runs logistics with it, Alphabet cuts internal costs while owning the model and cloud, and Meta pairs flat headcount and rising margins with its own silicon. x.com 

Software looks like a group that can lead the market higher, with many names from Palantir and ServiceNow to Zeta and MongoDB moving from late Stage 4 or Stage 1 into early Stage 2 uptrends. Sentiment is at an all-time low on fears that AI agents and chatbots will replace SaaS. AI will disrupt some areas, but many software businesses are using it to grow revenue, ship faster and expand operating leverage, and will thrive. The charts will separate survivors from the dead. x.com  x.com 

Alphabet will be the ultimate hyperscaler winner, in consumer AI, while peers ramping AI spending and crushing their cash flows keep struggling. The big five hyperscalers spending over $700B on AI capex this year are down 16% on average since software peaked on October 29, 2025, as investors question OpenAI's $1.4T commitments and hyperscaler returns. AI bills exploded with agentic token use: Uber spent its full-year AI budget in four months, and Coinbase's CEO is testing Chinese models. x.com  … Show more

Software and consumer discretionary stocks such as Booking, Shopify, Zoom and Amazon are where the AI payoff could show up strongest first. AI chip stocks are just the pickaxes, and their demand exists only because companies expect massive efficiency gains, margin expansion and revenue growth from that compute, gains that have yet to show up in the stocks using it. x.com  x.com  x.com 

Microsoft's strong quarter reinforces the AI trade: it is executing extremely well, and AI's productivity benefits are real, so its beneficiaries will keep investing well into the future. Its very reasonable valuation won't last, as AI slowly becomes the only game in town while high inflation slows consumers. x.com  x.com