S. investment, saying spending is moving away from residential investment and toward computers as the AI investment boom accelerates.
" He pointed out that inflation-adjusted spending on information-processing equipment, which includes data centers and computer hardware, now exceeds residential investment. Investment Shifts Data from the Bureau of Economic Analysis released in August shows real private residential fixed investment at $748 billion in the second quarter, while information-processing equipment reached $752 billion.
" Shapiro also noted that residential investment is more sensitive to borrowing costs, while AI investment has been less sensitive to interest rates. Read Also: Austin to San Antonio in Under 30 Minutes?
Elon Musk Says Boring Company Is Working on 200+ MPH Tunnel to Beat Traffic AI Capex Accelerates The AI investment cycle is also expanding rapidly. 85 percentage points a year.
"The AI cycle is building at close to twice the pace of the housing boom at its fastest," Torsten Slok, Partner and Chief Economist at Apollo Global Management, said. 2 trillion the following year.
Spending And Risk S&P Global estimated capital expenditures from Alphabet Inc. com Inc.
(NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), Meta Platforms, Inc.
(NASDAQ:META), Oracle Corp. (NYSE:ORCL) and Space Exploration Technologies Corp.
3 trillion in 2027, S&P Global Ratings reported that all six hyperscalers are expected to generate negative free operating cash flow in 2026 and 2027, with recovery not projected until 2029. The firm is also monitoring AI investment monetization, demand durability and overcapacity risk, while its models generally assume a 2028 inflection point, with revenue accelerating and capital expenditure growth moderating.
