AI Cap-Ex Boom Surpasses 1999 Internet Peak as Share of US Economy

Industry
โดย Zacks Investment Research·Read original
Summary · why it matters

The current artificial intelligence infrastructure build-out has surpassed the peak of the late-1990s internet boom as a share of the total US economy, according to Zacks Chief Equity Strategist and Economist John Blank. Blank notes that tech has been responsible for the majority of US GDP growth for an extended period, driven by massive AI capital expenditures projected to reach significant levels by 2026. He warns that two S&P 500 sectors appear overvalued, with tech being one of them, and sees potential for a near-term valuation correction. For investors, Blank highlights three large-cap stocks: Applied Materials, Cisco Systems, and Alphabet, ranking them from most overvalued to most reasonably valued.

Impact on stocks 3

Artificial Intelligence▲ · 2 stocks
Cisco Systems Inc
CSCO
± MixedCapitalrelevance

Analyst ranks Cisco as overvalued but not as severely as Applied Materials; no specific catalyst mentioned.

Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Analyst ranks Alphabet as most reasonably valued among the three, implying less downside risk.

Semiconductors▼ · 1 stocks
Applied Materials Inc
AMAT
▼ NegativeCapitalrelevance

Analyst ranks Applied Materials as most overvalued among the three, warning of near-term valuation correction.

Theme Impact 3

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