AI Value Concentration
Shows where in the AI stack value is accumulating.
Current Status
Last updated: Feb 20, 2026
• Applications receiving 49% of value
• End-user solutions gaining traction
What It Means
Value Concentration identifies whether investment and activity are concentrating at the foundational layer (downstack) or the application layer (upstack).
Downstack: Capital flowing to infrastructure, chips, compute, and foundational models. Benefits providers of AI building blocks.
Upstack: Capital flowing to applications, vertical solutions, and end-user products. Benefits companies closer to customers.
Fragmented: Value distributed across the stack without clear concentration. Multiple opportunities but no dominant trend.
Which Stock Categories Tend to Benefit
Infrastructure
Direct beneficiary of downstack concentration.
Models & Platforms
Benefits from both downstack (foundational models) and fragmented (platform adoption).
Data & Analytics
Benefits from fragmented concentration—data needed across the stack.
Applications
Direct beneficiary of upstack concentration.
How We Compute It
- •Computed by mapping upstream sector funding to beneficiary categories using weighted mapping.
- •Sectors like AI chips and infrastructure map heavily to infrastructure; enterprise AI maps to applications.
- •Dominant pressure (>30% with significant margin) determines stack position.
Limitations
- •Mapping is based on sector classification, which may have edge cases.
- •Large deals in one sector can shift the signal temporarily.
- •Doesn't capture value creation vs. value capture dynamics.
For informational purposes only. Not investment advice.