Apologies for a second note today, but a new report from JPM economists fits so neatly into what we've been talking about there that I had to mention it. I have written many times (see here, here, and here) about how spending on data centers is now a large fraction of U.S. GDP growth simply based on hyperscaler spending. I have speculated, given typical multipliers, how much larger its effects might actually be, once one considers its broader effects on suppliers, consumer spending, and more.
Well, here are some highlights from a new JPM report:
- AI = 44% of S&P500 — A basket of 30 AI-linked firms now represents nearly half of total U.S. equity market cap. We are at dot-com-era extremes.