""I won't go into particular names," Powell told reporters after the Fed's policy meeting, "but they actually have earnings."These companies ... actually have business models and profits and that kind of thing. So it's really a different thing" from the dotcom bubble, he added."
""I don't think interest rates are an important part of the AI or data center story," he said. "It's based on longer-run assessments that this is an area where there's going to be a lot of investment, and that's going to drive higher productivity.""
""We are not concerned about the total amount of AI investment," the Goldman team wrote."
Major AI-related firms possess earnings, business models and profits, distinguishing the current AI investment surge from the dotcom bubble. The corporate build-out involves hundreds of billions in data center and semiconductor spending and serves as a genuine engine of U.S. growth. The boom is driven by longer-run investment assessments and expected productivity gains rather than by low interest rates or monetary stimulus. Economists estimate the present-value productivity gains could be roughly $8 trillion, with high-end scenarios up to $19 trillion, and view current AI investment levels as broadly sustainable despite uncertainty about ultimate winners.
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