Cathie Wood: US Corporate Pre-Tax Profit Margins Hit Multi-Decade High, AI and Productivity Gains May Drive a New Round of Divergence

Odaily News, ARK Invest Founder Cathie Wood stated on the X platform that US corporate pre-tax profits as a percentage of GDP have reached 13.2%, a level not seen in decades.

Wood noted that the massive monetary and fiscal stimulus during the pandemic drove rapid profit growth, but the factors supporting current profit levels are shifting. She believes that more companies are leveraging artificial intelligence (AI) and productivity-enhancing tools to optimize operations and protect profit margins.

She stated that the market is still in the early stages of observing AI's impact on corporate earnings, and companies that can effectively apply AI to boost efficiency will further widen the gap with those unable to adapt to technological change.

Wood said that AI-driven productivity gains could become a key driver of sustained corporate profit growth, with the impact expected to gradually materialize over the coming years.