Nvidia's $96B Quarter: AI Chip Dominance

Key Takeaways

• Apollo economist Torsten Slok says AI has delivered zero financial payoff outside the Magnificent 7 tech stocks
• Revenue per worker for the Magnificent 7 reached about $780,000 while the S&P 493 stayed near $525,000
• Profit margins for the Magnificent 7 climbed to nearly 30% while the S&P 493 remained around 10%
• Nvidia reported revenue of $96 billion and net income of $59 billion in its latest quarter
• Micron posted revenue growth of over 370% but faces risks from cyclical memory supply
• Nvidia proposed a $2,000 per GPU annual fee for AI agents, potentially earning $10 billion per year
• Adobe partnered with BWT Alpine Formula One Team for AI fan experience starting in 2027 season
• Spotify removed 50 million AI-generated spam tracks from its recommendation system
• A Chilean court blocked Google's data center over water use concerns in Concepción
• SK Hynix surpassed Intel in revenue over eight quarters, growing from $12.1 billion to $52.6 billion

Apollo's Slok Says AI Has Zero Payoff Outside Tech

Apollo Global Management Chief Economist Torsten Slok said AI has delivered zero financial payoff to corporate America outside of the technology sector. He wrote that revenue per worker and profit margins are rising for the Magnificent 7 but remain flat for the other 493 S&P 500 companies. He also found no clear evidence that AI is boosting productivity growth. Slok said mainstream companies increasingly see token spending as a cost rather than a growth driver.

Torsten Slok Warns AI Payoff Limited to Tech Stocks

Apollo Global Management Chief Economist Torsten Slok warned that AI has delivered zero financial payoff outside of big tech. Revenue per employee for the Magnificent 7 reached about $780,000 while the S&P 493 stayed near $525,000. Profit margins for the Magnificent 7 climbed to nearly 30% while the S&P 493 remained around 10%. Slok said the AI story will be decided in the S&P 493, not the Mag 7, and that AI spending is highly concentrated among the top 10% of firms.

AI Delivers No Results Outside Big Tech, S&P 500 Firms Stagnate

Apollo Global Management reported on October 24 that massive AI investment has not produced financial results for U.S. companies outside the tech sector. The Magnificent 7 are seeing rising revenue per employee and profit margins, while the 493 other S&P 500 companies remain flat on both measures. There is no sign yet that AI has lifted productivity growth. The report said AI success will be decided by the other 493 companies, not the Magnificent 7.

Apollo Says AI Delivered Zero Financial Payoff Outside Tech

Apollo Global Management found that AI has delivered zero financial payoff outside the tech industry. The firm's analysis shows only tech companies are seeing growth from the AI boom. This finding contrasts with the widespread hype about AI revolutionizing industries. The lack of financial payoff raises concerns that the technology may not live up to its promise for most of corporate America.

Big Tech Profits From AI While Rest of Corporate America Sees No Returns

Apollo Global Management chief economist Torsten Slok said revenue per worker and profit margins are rising for the Magnificent Seven technology stocks while remaining flat for the other 493 S&P 500 companies. He found no clear evidence that AI is boosting productivity growth despite heavy investment. He said AI does not understand accountability, trust, culture, ethical trade-offs or fairness, all of which shape reputational risk and drive revenue growth. Slok added that the AI story will be decided in the S&P 493, not the Mag 7.

AI delivers zero financial payoff to most companies says Apollo economist

Apollo economist Torsten Slok studied the S&P 493, which excludes the Magnificent 7 tech giants. He found that profit margins and revenue per worker are flat for these companies. There is no evidence that AI is improving productivity outside of tech. Slok argues that AI lacks judgment, trust, and cultural understanding needed to drive revenue growth.

Hunting for AI gains outside Magnificent 7

A new Apollo analysis found that corporate America's massive AI investments have delivered zero financial payoff outside the Magnificent 7. This finding intensifies investors' fears about big AI spending. The concerns come ahead of critical Big Tech earnings reports this week. The data suggests non-tech companies are not seeing productivity gains from AI.

Nvidia vs. Micron: The AI Revolution Is Big Enough for Both

Nvidia and Micron both play key roles in the AI revolution. Nvidia makes logic chips that power AI thinking while Micron makes memory and storage solutions. Over five years Nvidia stock advanced over 800% and Micron soared 1,200%. Nvidia reported revenue of $96 billion and net income of $59 billion in its latest quarter. Micron reported revenue growth of over 370% and is focusing on agentic AI. The article names Nvidia as the better buy due to Micron's vulnerability to memory price declines.

Nvidia vs. Micron: The AI Revolution Is Big Enough for Both

Nvidia and Micron are both important players in the AI revolution. Nvidia dominates the AI chip market and reported revenue soaring 106% to $96 billion. Micron makes memory and storage and reported revenue growth of over 370% in its latest quarter. The article says Nvidia is the better buy because Micron faces risks from cyclical memory supply. Nvidia's broad presence across AI helps it navigate potential headwinds better.

Nvidia discusses $2,000 per GPU annual software fee for AI agents

Nvidia CEO Jensen Huang discussed pricing at GTC Berlin on October 22. Nvidia proposed a $2,000 per GPU annual fee for running AI agents on its infrastructure. At that rate, Nvidia could earn $10 billion annually from five million GPUs. Over five years that could reach $50 billion in subscription revenue. Nvidia already charges more than twice that amount for its AI Enterprise software platform. The company has not said when the fee would take effect or which software it would cover.

Adobe partners with BWT Alpine Formula One for AI fan experience

Adobe announced a global partnership with the BWT Alpine Formula One Team starting in the 2027 season. Adobe will serve as Alpine's Official AI Fan Experience Partner. The company will use its AI tools to create personalized and interactive fan journeys. Its platforms will be applied across race venues and digital channels. The deal showcases Adobe's GenStudio and Experience Platform tools in a high-visibility setting.

Trump's AI push creates economic uncertainty ahead of midterm vote

A whistleblower warned President Trump that public concern over AI could jolt markets concentrated in AI stocks. Economists warn that Trump's fiscal policies leave the government with fewer tools to respond to a crisis. Ray Dalio and Ken Griffin have both warned that AI stocks may be in a bubble. Spending on data center infrastructure accounted for nearly all U.S. economic growth last winter and spring. Tariffs and visa restrictions are also raising costs and limiting talent for the AI industry.

Nikhil Kamath warns AI industry faces tough months ahead

Investor Nikhil Kamath said nearly $1 trillion goes into AI every year while enterprise AI revenue is only $100 billion to $200 billion. He identified a gap of $700 billion to $800 billion between AI spending and revenue. Kamath spoke at the NDTV World Summit 2026 about the challenges ahead. He said US Treasury rates could rise to 5%, 6% or 7%, making fundraising harder. He advised companies that can raise large capital now and hold onto it to be in a better position.

Alfaisal University and Saudia Cargo sign AI research agreement

Alfaisal University and Saudi Airlines Cargo Company signed a Memorandum of Understanding to cooperate on AI research and talent development for logistics. The agreement covers joint research programs, curriculum development, student internships, and specialized AI workshops. Saudia Cargo will explore employee development through Alfaisal's academic programs. Alfaisal offers Bachelor and Master degrees in Artificial Intelligence and runs an AI Center and AI Academy. The partnership aims to support innovation in the logistics sector under Saudi Vision 2030.

Chilean court blocks Google data center over water use concerns

A Chilean environmental court partially reversed a permit for Google to build a data center in Concepción. Google had planned to use 7.6 million liters of water daily to cool its servers in a city facing water scarcity for over 15 years. The city's mayor Luciano Crispi raised concerns about the impact on local water supply. Google argued its data center would use a closed-loop system to minimize water waste. Environmental groups celebrated the ruling as a victory after months of protest.

Spotify removes 50 million AI spam tracks from recommendations

Spotify removed 50 million AI-generated spam and slop tracks from its recommendation system. The company uses multiple methods to identify this content beyond just AI detection. Spotify recently launched AI Credits and AI Persona badges as part of its efforts. Representatives said the work to protect the listening experience is not finished yet.

Intel and SK Hynix revenue trends show SK Hynix growth surge

SK Hynix has surpassed Intel in revenue over the past eight quarters. Intel revenue stayed steady between $12.7 billion and $16.1 billion per quarter. SK Hynix revenue grew from $12.1 billion in Q1 2025 to $52.6 billion in Q2 2026. Intel priced a $20 billion stock offering and partnered with Applied Materials. SK Hynix broke ground on a semiconductor facility in Indiana and signed a memorandum for federal grants.

Sources

• Apollo’s Slok Says AI Has Delivered Zero Payoff Outside of Tech
• Apollo’s Torsten Slok Warns AI Has Delivered ‘Zero Financial Payoff’ Outside Tech — 'AI Story Will Be Decided In The S&P 493, Not The Mag 7'
• AI delivers no results outside big tech, S&P 500 firms' sales, margins stagnate
• Apollo: AI has delivered 'zero financial payoff' to corporate America
• Big Tech is cashing in on AI while the rest of corporate America sees no financial returns — report outlines how rising token costs threaten to squeeze corporate profit margins
• AI delivers ‘zero financial payoff’ to most companies, according to Apollo economist
• Hunting for AI gains outside Magnificent 7
• Nvidia vs. Micron: The AI Revolution Is Big Enough for Both. Here's the Better Buy.
• Nvidia vs. Micron: The AI Revolution Is Big Enough for Both. Here's the Better Buy.
• Nvidia discusses $2,000-per-GPU annual software fee for running agents on AI infrastructure — firm already charges more than twice that amount for its AI Enterprise software platform
• Adobe (ADBE) Lands 2027 AI Fan Experience Partnership In Global Sports
• As vote nears, Trump’s AI gamble fuels economic uncertainty
• Is AI Bubble Waiting To Burst? Nikhil Kamath Warns Of Tougher Months Ahead
• Alfaisal University and Saudia Cargo sign MoU to advance artificial intelligence research and talent development for the logistics sector
• AI’s Boom is Paid in Water
• Spotify Has Taken 50 Million AI Slop, Spam Tracks Out of Recommendations
• Intel vs. SK Hynix: Revenue Trends to Help Investors Weigh Which Artificial Intelligence Stock to Buy