US tech profitability is exploding higher: Profit margins for Technology, Media, & Telecom (TMT) stocks are up to a record 24%. Margins have doubled since the 2022 bear market. Tech profit margins are now nearly 10 percentage points above their historic trend, which is currently running at ~15%. By comparison, profit margins for companies excluding tech stand at ~9%, in-line with their long-term trend. This is still below the 2007 peak before the Financial Crisis started and below the 2021 high. As a result, tech profit margins are now ~2.7x higher than the rest of the market. The AI Revolution is transforming tech's profitability.(The Kobeissi Letter)