Live Markets-Don't worry about AI investment slowing

One of the many AI worries is about what might happen if, or when, the AI investment boom slows or even halts.

Concerns include the impact on companies (and their share price) that - for now - stand to benefit from the massive capex spending, any potential knock-on effects in adjacent sectors, as well as what it means for the economic factors like growth and employment.

According to a BofA Global Research report though, there's not really much reason for concern.

Taking stock after five weeks of the current earnings season, which has included all AI hyperscalers, the note finds that "capex plans show no signs of slowing down." In fact, they are expected to grow by 35% again next year, the report added.

That suggests investment should stay a tailwind for the economy next year - in the first half of 2026, the BofA Global Research report points out, it accounted for one-third of growth.

"What's more, the investment cycle is having positive second-order effects: i) wealth continues to climb and ii) manufacturing production and employment growth in AI related industries has accelerated."