On AI Concentration, Booming Earnings & Germany’s Surprise

The AI industry may well consolidate, possibly down to a few powerful players. That’s especially possible if demand for AI falls short of the expectations assumed by the funders of the AI infrastructure buildout, straining ability to meet financial commitments. Melissa examines AI bears’ arguments and puts market-concentration risks into perspective. … Also: Joe reports that analysts have been raising their estimates for most S&P 500 sectors’ companies. That’s translating to rising forward earnings and revenues, contrary to the usual pattern at this time of year. Margins are strong too, and the AI boom should improve them further. … And: William reports on the German economy’s surprising resilience.