Recent advancements in artificial intelligence (AI) are boosting optimism about the productivity of businesses in the future and contributing to a surge in the stock market.

The S&P 500's 9% increase this year has been driven by a few of the index's largest stocks, many of which are at the center of the AI frenzy.

Microsoft, Google parent Alphabet, Nvidia, Apple, and Meta Platforms are responsible for the S&P 500's entire year-to-date return, with 25% to 50% of those gains attributed to the buzz around AI.

The rush of AI developments has analysts excited about the profit potential from new revenue opportunities and productivity improvements.