JPMorgan Says This Is Where You Should Be Investing in AI

"JPMorgan Chase ( ) just issued its Outlook 2026 report that frames artificial intelligence (AI) as a multi-decade productivity revolution on par with electricity or the internet, with no evidence of a bubble forming yet. Massive tailwinds are pushing the technology forward as supply constraints remain severe. For example, data center vacancy rates sit at 1% to 2%, new capacity is 75% to 100% pre-leased years in advance, and leading-edge chips are sold out 12 to 18 months ahead."

"Capital spending by the tech giants has tripled since 2023 and is forecast to top $500 billion annually by 2026 - nearly a quarter of all U.S. corporate capex. Power demand also stands out as the sharpest bottleneck, with AI projected to drive an additional 662 terawatt hours (TWh) of U.S. electricity consumption by 2030, equivalent to adding several new Texases to the grid. Transmission backlogs exceed five years, and 70% of lines are over 25 years old."

"JPMorgan repeatedly stresses that chip supply, not demand, will gate the entire buildout for years. Advanced nodes are capacity-constrained, hyperscalers are locking in multi-year deals, and foundry expansion lags far behind announced demand. Nvidia ( NASDAQ:NVDA ) remains the undisputed leader - its platforms train and run over 90% of cutting-edge models, Blackwell chips are booked solid through 2026 , and it ranks among the handful of companies driving the capex surge."

AI represents a multi-decade productivity revolution comparable to electricity or the internet. Severe supply constraints are limiting expansion: data center vacancy rates are 1–2%, new capacity is 75–100% pre-leased years ahead, and leading-edge chips are sold out 12–18 months. Tech capital spending has tripled since 2023 and is projected to exceed $500 billion annually by 2026, roughly one-quarter of U.S. corporate capex. Power demand is a major bottleneck, with AI estimated to add 662 TWh of U.S. electricity consumption by 2030. Net job gains and roughly 30% productivity improvements are expected in impacted sectors, supporting investments in chips, power, and infrastructure.

Read at 24/7 Wall St.