#ai-spending

#ai-spending

Though Meta, Amazon, Microsoft, Google, and Tesla are expected to have spent some $560 billion on AI development by the beginning of next year, their collective revenue from AI comes in at a paltry $35 billion. In the first half of 2025, the Atlantic notes, business spending on AI added more to GDP growth in the United States than all consumer spending combined.

Researchers at Pantheon Macroeconomics found that AI-related spending accounted for a 0.5 percentage point difference in annualized GDP growth for the first half of the year.

The S&P 500 is up 10% year-to-date, powered by the 'Magnificent Seven' tech giants whose foreign-heavy revenues are being boosted by the weaker dollar. Concentration in the top 10 stocks is at its highest since the 1960s, with earnings strength - 83% of companies beating estimates - driving sentiment.

ASML plays a key role in the semiconductor industry, creating lithography systems that are essential for chip production, particularly as AI spending escalates globally.