AIMX — AI Margin Expansion Index
Tracking how artificial intelligence is reshaping profitability across the software industry.
AIMX quantifies the operating leverage unlocked by AI adoption across leading software companies. It continuously analyzes hiring velocity, layoff sentiment, AI-efficiency narratives, developer productivity, and management language to produce a real-time composite score that reflects margin expansion momentum.
In short: AIMX measures how much of a company's margin expansion is socially visible before it shows up in earnings.
What AIMX Measures
AIMX captures five signal dimensions that reflect early shifts in operating leverage:
Hiring Velocity (H)
25%Tracks net change in job postings for technical and sales roles. Declining hiring rates often precede cost discipline and operating margin expansion.
Layoff Intensity (L)
20%Measures frequency and sentiment of layoff chatter across internal and social channels. Rising layoff intensity indicates near-term efficiency pushes.
AI Productivity Chatter (A)
30%Detects internal and developer discussions around automation, copilots, and AI tooling. Higher chatter correlates with productivity improvements and margin expansion.
Efficiency Narrative Drift (E)
15%Quantifies shifts in management vocabulary toward 'efficiency,' 'profitability,' and 'leverage.' Tracks strategic narrative changes before they manifest in metrics.
Sentiment Stability (S)
10%Tracks morale and confidence in social and internal forums. Sustained optimism during cost optimization phases signals durable margin expansion.
Calculation Methodology
AIMX operates as a composite normalized score for each company c at time t.
Step 1: Normalize Each Signal
For each metric x ∈ {H, L, A, E, S}:
where μ_x and σ_x are rolling 90-day mean and standard deviation within the same peer group.
Step 2: Directional Adjustment
To align signals with margin implications:
Step 3: Weighted Composite Score
Weights are empirically tuned via regression against gross-margin deltas:
All values are scaled to a 0–100 index:
Step 4: Aggregate Index
The headline AIMX value at time t is a market-cap-weighted average across the tracked universe (top 150 software firms):
AIMX Score Interpretation
Understanding what AIMX values signal about market-wide margin trends:
> 60
Broad-based margin expansion signals visible. Expect earnings surprises or guidance upgrades.
50
Neutral operating environment.
< 40
Margin compression likely — rising hiring or falling AI efficiency signals.
Live AIMX Dashboard
Coming Soon
Top Gainers
Companies with fastest 30-day AIMX acceleration
Sector Breakdown
SaaS vs Infrastructure vs AI-native performance
Signal Attribution
Contribution breakdown (H, L, A, E, S) per company
Narrative Pulse
Live feed of AI efficiency mentions on X and Blind
Methodology Highlights
Rolling Normalization
Eliminates noise from temporary spikes with 90-day rolling windows
Dynamic Updates
Signals updated daily; weights re-fit quarterly against reported margins
Outlier Filtering
Robust z-score methods and sentiment smoothing for reliable signals
Public API
Access via /api/aimx?company=ticker
“Tracking profitability before the earnings call.”
AIMX is developed by StreetMining