JPMorgan Global Research is doubling down on a central thesis for 2026: The surge in AI investment is not only durable, but increasingly profitable.
In its midyear outlook, the firm points to a broadening capital expenditure cycle anchoring growth expectations. At the center is the “AI upstream” build-out—data centers, chips, and supporting infrastructure—still heavily concentrated in the U.S., which commands about 85% of AI and machine learning venture capital. Spillover benefits are expected in China, South Korea, and Taiwan, given their roles in semiconductor supply chains.
