AI investment driving U.S. economy — but with bubble concerns

Massive investments in artificial intelligence (AI) by major tech firms are being credited with giving the U.S. economy a notable boost — though some warn it may resemble a bubble. 

Highlights:

Companies such as Nvidia and Microsoft (and others like Alphabet, Meta Platforms) are aggressively ramping up AI spending, data-centres and infrastructure.

Analysts say that without the tech/AI-investment tailwind, the economy might already be in recession. 

But: concerns remain that valuations could become detached from fundamentals, creating bubble‐like risk, especially if growth expectations don’t materialise.