LIVE MARKETS-AI could be the most important macro factor in 2026
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AI COULD BE THE MOST IMPORTANT MACRO FACTOR IN 2026
AI could be the most important macro factor in 2026, as traditional drivers such as monetary policy and trade policy fade, some analysts say.
"We think the AI narrative will continue next year. There is no turning back," analysts at Barclays note.
Hyperscalers are fueling that momentum, lifting capital expenditure forecasts amid persistent cloud and AI supply-demand tightness.
According to Barclays' estimate, total hyperscaler capex consensus is now around $390 billion for 2025, $540 billion for 2026 and $630 billion for 2027.
"AI is at the heart of the debate," analysts at UBS said.
The current boom has the potential to deliver the necessary productivity improvements to overcome historical constraints and help economies achieve their own type of "escape velocity", they added.
Confidence in the sector got a boost after Nvidia NVDA.O delivered blockbuster results, quelling concerns over an AI-driven bubble and breathing new life into a rally that had recently shown signs of slowing.
Nvidia CEO Jensen Huang on Wednesday shrugged off concerns about an AI bubble. "From our vantage point, we see something very different," he said.
Analysts at Barclays added that whoever wins the energy race likely will win the AI race.
(Joel Jose)
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BITCOIN GETS POLITICAL CLICK HERE
EUROPE SPARKS TO LIFE AFTER NVIDIA RESULTS CLICK HERE
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U.S. JOBS TEST LOOMS AFTER NVIDIA RELIEF CLICK HERE
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