Good morning. AI-driven capital spending is scaling rapidly, and the economics remain attractive and increasingly profitable—for now, according to JPMorgan Global Research’s midyear outlook.
Analysts see a broadening AI capex cycle underpinning growth expectations, led by “AI upstream” investments in data centers, chips, and supporting infrastructure. Much of this activity remains concentrated in the U.S., which accounts for about 85% of AI and machine learning venture capital, with spillover benefits expected in China, South Korea, and Taiwan through their roles in semiconductor supply chains.
