Should You Worry? This AI Cap-Ex Boom is Bigger than 1999.

Is this “AI” Cap-Ex boom bigger than the 1999 Internet boom?

U.S. macro data clearly says: YES!

Let’s dig into this now with our Chief Equity Strategist and Economist, John Blank.

1. You wrote recently in terms of U.S. macroeconomic weight, the current “AI” infrastructure build-out has actually surpassed the peak of the late-1990s internet boom as a share of the total U.S. economy. So has tech alone been responsible for the majority of U.S. GDP growth and for how long?

2. What Are Current “AI” Cap-ex Spending Levels (2026)?

3. What’s this driven by?

4. By comparison, what was the internet investment at the Dot-Com Height?

5. Do you see all of this as good for the economy long term or is there a concern?

6. You say There are two overvalued S&P500 sectors to be aware of. Is Tech one of them?

7. What’s the other?

8. Do you see valuations correcting near term?

9. What’s the takeaway for investors to all of this?

10. Next are three Zacks #1 (STRONG BUY) large cap stocks, starting with the most over-valued large cap stock, and ending with the most reasonable. Applied Materials AMAT, Cisco Systems CSCO and Alphabet GOOGL.

Our Chief Equity Strategist & Economist, John Blank, on the “AI” Cap-EX Boom.

With John, I’m Terry Ruffolo.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

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This article originally published on Zacks Investment Research (zacks.com).

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