Mike Larson | Editor-in-Chief
Is AI really THAT big of a deal when it comes to the US economy? Judging from the latest GDP figures, the answer is a resounding “Yes!”
Take a look at the MoneyShow Chart of the Day, which comes courtesy of Ed Yardeni’s Yardeni QuickTakes newsletter. It shows that high tech spending accounted for 55% of nominal nonresidential capital spending in the first quarter – the highest on record!
It’s an AI Economy and We’re All Just Living in it
Source: Yardeni QuickTakes
Overall, the economy grew at an annual rate of 2% in Q1. But business investment surged at its fastest rate in three years because of – you guessed it – investing on AI-related equipment and software. No wonder Ed headlined the issue “The Roaring 2020s Express Train.”
What’s more, the trend shows no sign of slowing. If anything, last week’s hyperscaler earnings reports suggest that capex spending could accelerate FURTHER. Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Alphabet Inc. (GOOGL), and Amazon.com Inc. (AMZN) guided toward $725 billion in cumulative 2026 capex in their first-quarter reports. That’s UP from previous high-end estimates of $670 billion.
Having an economy increasingly dependent on one trend is great...as long as that trend persists. Fortunes can and are being made investing in direct and indirect AI plays. But at some point, the trend will end. Don’t let greed blind you to that immutable fact as a trader or investor!.
Jason Bodner of MoneyFlows explains that while the market feels "crazy," data since 1960 shows the second year of a presidential cycle is consistently the weakest and most volatile. The good news? Once election uncertainty is removed, the S&P 500 historically sees a 6% boost in the fourth quarter. Check out the full segment recorded at the 2026 MoneyShow Masters Symposium Hollywood Florida for more.
After the S&P’s Second-Best April EVER, Find Out What’s NEXT Here...
April was a blockbuster month for the S&P 500! It surged more than 10%, making it the index’s second-best April EVER. Now, see what the experts think will happen NEXT – at the 2026 MoneyShow Masters Symposium Dallas!
Dozens of top market minds are descending on the Hilton DFW Lakes Executive Conference Center for our May 14-16 conference — and they’ll lead timely, actionable sessions like “AI Stocks – The Run has Started”…”The Best Stocks & ETFs to Buy Now”…and “Themes for 2026: What to Expect for the Rest of This Year.”
Don’t miss out on the profits their picks can spin off! Secure YOUR pass here today:
AI datacenter growth relies on speed. Fiber optics solve legacy latency issues. This benefits a select group of optical suppliers. One of the top photonics stocks to trade in 2026 is Corning Inc. (GLW), advises Lucas Downey, co-founder of MoneyFlows.
👉 TICKER: AROC
Valued at $6.5 billion, Archrock Inc. (AROC) is a provider of natural gas contract compression services as well as a supplier of aftermarket services of compression equipment. The Trend Seeker issued a new “Buy” signal on April 13. Since then, the stock has gained 5%, observes Jim Van Meerten, analyst at Barchart.
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