Kevin O’Leary Says ‘The Economy Is on Fire,’ Calls Trump the ‘First AI President’ as AI Boosts S&P 500 Earnings

Investor Kevin O’Leary said artificial intelligence is helping drive corporate productivity and earnings, even as tariffs, inflation uncertainty, wars and elevated bond yields create economic risks. AI Boosts S&P 500 Earnings On Saturday, O’Leary made the remarks in an X post sharing a NewsNation interview clip, arguing that the market’s resilience reflects expectations for continued AI-driven growth. "This is not a recession-based situation. The economy is on fire as measured by the earnings of the S&P," he wrote. He added that President Donald Trump is "the first AI president," saying he is benefiting from "margin enhancement and productivity enhancement across all 11 sectors" as S&P 500 companies adopt AI. O’Leary also pointed to two ongoing wars, U.S. tariffs, inflation instability and rising bond prices, saying investors might otherwise expect the market to sell off. In the NewsNation clip, O’Leary said he closely monitors the bond market because he raises capital through debt markets. "I watch it 24 hours a day. I watch it in my sleep," he said. O’Leary said AI’s impact extends beyond large corporations, arguing that companies with five to 500 employees are also benefiting from the technology. This is not a recession-based situation. The economy is on fire as measured by the earnings of the S&P. No one saw this coming but Trump is the first AI president, he's getting the benefit of margin enhancement and productivity enhancement across all 11 sectors as all of these… pic.twitter.com/Bxm71fFGjq— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) September 26, 2026 Read Also: Kevin O’Leary Says Chasing Money Just to Get Rich Never Works — ‘You Never Have Enough. But in Life You Don’t Need That Much’ AI Bubble Faces 2027 Risk Earlier this month, Capital Economics warned that the AI boom was nearing its late stages, citing high tech spending, stretched valuations, optimistic earnings expectations and increasing market concentration. It projected the S&P 500 could fall to 6,500 by the end of 2027 and potentially decline at least 30% from its peak. AI Productivity Gains Last month, Synopsys, Inc. (NASDAQ:SNPS) said customers reported AI-driven productivity gains of up to six times, with autonomous engineering workflows reducing tasks that previously took weeks to hours. One customer had seen a "5x-6x productivity gain" using its agentic flow for formal verification, which also identified an issue traditional tools had missed. In July, ARK Invest CEO Cathie Wood said AI-driven productivity could push long-term interest rates lower as companies passed efficiency gains to consumers through lower prices. She compared the AI boom with the Industrial Revolution and said widespread productivity gains could ease inflationary pressures and bring down long-term rates. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Jeff Bezos Says Instead of AI Taking Jobs, It’s Going to Create a ‘Labor Shortage’ — Humanity Has an ‘Endless Set of Things to Invent’ Photo courtesy: Kathy Hutchins / Shutterstock.com