AI Capex Boom Continues to Boost US Economic Growth

I. On Industrials

Investors are suffering from AI fatigue. They've concluded that there is no way to estimate whether all the capital spending on AI infrastructure will generate good ROIs in the coming years. What they do know is that hundreds of billions of dollars are being spent on AI capex in the here and now. That explains why S&P 500 Industrials is the second-best-performing of the 11 S&P 500 sectors with a gain of 17.7% ytd (chart). That's ahead of the 15.4% gain for the S&P 500 Information Technology sector.