US Tech Firms Post Record 24% Profit Margins Amid AI Surge, Outpacing Non-Tech Companies by Wide Margin
US know-how corporations are attaining file revenue margins because of advances in synthetic intelligence.
Revenue margins for Expertise, Media, and Telecom shares have climbed to 24%, doubling from ranges seen in the course of the 2022 market downturn, reports The Kobeissi Letter.
These figures sit almost 10 proportion factors above the sector’s long-term common close to 15%. In the meantime, non-technology corporations keep margins round 9%, per their historic norms.
Tech margins now stand about 2.7 instances increased than these of the remainder of the market.
Present ranges stay under the 2007 peak previous to the monetary disaster and underneath the 2021 excessive.
“The AI Revolution is reworking tech’s profitability.”
The Kobeissi Letter additionally says that the AI Revolution is fueling a file financing increase within the US.
“US high-grade company bond issuance is predicted to surge to ~$215 billion in September, the biggest September issuance on file.
That is set to surpass the earlier September excessive of ~$205 billion, posted in 2025.
The present estimate can also be greater than triple the ~$70 billion issued in September 2022.
This follows $145.2 billion of US high-grade bonds issued in August, the very best August complete on file, as AI-related information heart buildouts proceed to gas company borrowing.
US corporations have already borrowed greater than $410 billion thus far in 2026, particularly to fund information facilities and different AI-related investments.
In the meantime, retail buyers have bought extra investment-grade bonds this yr than in any full yr in information going again to 2010.
The AI increase is driving a file company borrowing spree.”
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