AI investment boom now trails the 1990s tech cycle

Investing.com - AI-related capital spending has risen 1.2% of GDP since the first quarter of 2020, surpassing the investment pace of the 1970s oil boom and the 2010s shale expansion at comparable stages, according to BofA Global Research. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » This leaves only the 1990s technology cycle — which reached about 1.5% of GDP over an equivalent period — ahead of it. The numbers behind the BofA comparison are striking in isolation, but the real-economy footprint makes them more so. A Federal Reserve study found that data center spending on plant and equipment contributed roughly 0.20 percentage points to U.S.