AI Capex Lifts S&P 500 Near Records as GDP Contribution and Breadth Falter

The S&P 500 trades near record highs on a narrow AI-driven surge, with the Philadelphia Semiconductor Index up 64% since late March. Strong Q1 blended earnings growth of 27.1%—far above the 13% expected—has validated hyperscaler AI spending of roughly $700-800 billion, adding $10 trillion in market value. Yet only 52% of S&P 500 stocks sit above 50-day averages, tech concentration reaches 32.91%, and the Shiller CAPE stands at 40.9. April CPI spiked to 3.8% while real wages fell 0.3% year-over-year. Latest commentary questions whether AI capex is truly boosting domestic GDP or merely masking consumer weakness and limited broad-market participation.