UBS Warns US Growth Increasingly Reliant on AI Capex Buildout

MacroIndustry Impact 4
โดย Investing.com·US·Read original
Summary · why it matters

UBS economist Jonathan Pingle said in a note on Thursday that the pickup in U.S. business investment and manufacturing is more dependent on the artificial intelligence boom than many investors realize. Pingle wrote that signs of broader growth have emerged this year, with the broadening theme most clearly visible in orders and shipments data, but much of that strength traces back to AI, describing the AI buildout as a rising tide lifting all boats. Traditional industrial firms are seeing more demand because of the AI buildout, with GE Vernova making gas turbines that power data centers and Caterpillar reporting strong generator sales, while demand has also spread to inputs such as steel, machinery, wiring and cable. UBS said this suggests the rest of the economy would be weaker without AI spending, and Pingle wrote that the expansion is more reliant on the AI and tech capex buildout than ever, with implications for growth, risks and monetary policy. He added that GDP growth, business investment and inventories are being broadly supported by the direct and indirect demand stemming from the AI buildout, calling the singular nature of the driving shock both unusual and exceptional at the moment.

Impact on assets 3

Energy Transition & Power Demand▲ · 2 stocks
Caterpillar Inc
CAT
▲ PositiveDemandrelevance

Caterpillar reported strong generator sales driven by the AI data-center buildout.

GE Vernova LLC
GEV
▲ PositiveDemandrelevance

GE Vernova is seeing more demand for its gas turbines that power data centers amid the AI buildout.

Artificial Intelligence▲ · 1 stocks

Theme Impact 5

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