What comes after the bubble could be electrifying

Group 1 - The stock market may see benefits from AI extending beyond large-cap tech companies, with small-cap stocks potentially outperforming large-cap stocks as they adopt AI technologies [1][2] - Small-cap stocks, as tracked by the Russell 2000, could experience a greater positive impact from AI adoption compared to large-cap stocks, with estimates suggesting that a 1% labor cost saving could lead to a ~6% EPS boost for small caps versus ~2% for large caps [2][3] - Companies across various industries are exploring and implementing AI applications, indicating that the benefits of AI are not limited to those developing the technology [3] Group 2 - The current phase of AI is still in its early stages, and it may take years to fully understand its impact on productivity across different sectors [4][6] - Historical parallels are drawn between the current AI era and past technological revolutions, such as electrification in the 1920s and the internet boom in the late 1990s, suggesting that significant upfront investments may be required before realizing productivity gains [5][6] - AI capital expenditures are expected to significantly support U.S. economic growth in the coming years, with many second-order effects of this investment not yet priced in [7]