Morgan Stanley frames AI-related capital expenditure as one of the largest investment waves ever recorded. This is not just a sector trend but a primary economic driver, projected to be larger than the shale boom of the 2010s and the telecommunications spending of the late 1990s.
The US economy is seeing a rare combination of high government deficits, massive AI-driven corporate investment, and bank deregulation. If the Federal Reserve also cuts rates based on labor market fears, this confluence of fiscal, corporate, and monetary stimulus could ignite unprecedented corporate risk-taking if growth holds up.