Zacks July Strategy: AI Tech Boom Surpasses Dot-Com Era as Share of U.S. Economy

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

Zacks Chief Strategist John Blank reports that the current AI infrastructure build-out has surpassed the peak of the late-1990s internet boom as a share of the total U.S. economy, with total private non-residential tech and telecom investment hovering around 5.5% to 6.0% of nominal U.S. GDP. Information processing equipment and software alone now account for 40% to 42% of all business capital expenditure. In the July sector outlook, Info Tech remains Very Attractive, with Cisco Systems highlighted as a Zacks number one rank strong buy. Industrials also stay at Very Attractive, featuring Johnson Controls International as a top pick, while Energy moves to Attractive from Very Attractive, led by Cenovus Energy. Blank cautions that both Info Tech and Industrials are overvalued and overdue for valuation corrections.

Impact on stocks 3

Artificial Intelligence▲ · 1 stocks
Cisco Systems Inc
CSCO
▲ PositiveDemandrelevance

AI infrastructure build-out driving demand for networking equipment; Cisco highlighted as Zacks #1 strong buy.

Smart City / Autonomous Infrastructure▲ · 1 stocks
Energy▼ · 1 stocks
Cenovus Energy Inc
CVE
▼ NegativeCapitalrelevance

Energy sector downgraded from Very Attractive to Attractive, implying reduced investment appeal.

Theme Impact 2

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