AI’s contribution to US stock market wealth: $8.5 trillion

$8.5T

Analysts at consulting firm Pantheon Macroeconomics estimate that the stock market’s enthusiasm for all things AI has added some $8.5 trillion to aggregate US household wealth since late 2022. They wrote:

“The S&P 500 returned about 70% between the start of ChatGPT mania around the end of 2022 to the end of Q2 2025, with roughly half of those returns generated by the ‘magnificent seven’ tech stocks, a very rough proxy for the stock market boost from AI euphoria.

We estimate that translates into a lift to household wealth held in stocks of about $8.5T.”

As my colleague Luke Kawa recently wrote, stock market wealth seems to be underpinning US consumer spending, especially among the richest Americans. Some of that spending may retrench if AI is indeed a bubble — as some have recently mooted — and eventually pops.

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Applied Digital whipsaws after posting quarterly revenue beat in Q1

Shares of Applied Digital are gyrating down and up and down again in postmarket trading after the company reported better-than-expected results for its fiscal Q1, the three-month period ended August 31.

The data center company, which counts Nvidia and CoreWeave among its major share and warrant holders, booked $64.2 million in revenues (estimate: $46.1 million) with an adjusted diluted loss per share of $0.03 (estimate: loss of $0.13).

“With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era,” Chairman and CEO Wes Cummins said.

The options-implied move for the stock on earnings is a whopping 17.6%, per Bloomberg data.

Applied Digital is also one of the components in the Roundhill Meme Stock ETF, which relaunched this week.

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AST SpaceMobile soars again, up 80% in October

Another day, another giant gain for satellite services provider AST SpaceMobile, which continues to get a lift from its announcement earlier this week that it has signed a deal with telecom giant Verizon to provide some cellular broadband services from its satellites by 2026.

Retail enthusiasm for the stock, despite the fact that it has posted growing losses over the last four years, is high, helped out by a fair amount of online boosterism.

JPMorgan analysts have AST on their list of “most hyped stocks on social media,” which it included in its “Retail Radar” note published Thursday. A quick glance at Wall Street Bets or volumes of call options — which hit their highest level in over a year yesterday — would seem to confirm retail participation.

It’s been a good trade. AST SpaceMobile is up more than 2,500% over the last two years, a rally that has created more than $20 billion in stock market wealth. To the moon, indeed.

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