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Macro Signposts

The AI Investment Boom Goes Beyond America

Economic resilience depends heavily on continued AI investment to bolster growth, imports, and exports around the world.
The AI Investment Boom Goes Beyond America
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In light of accelerating global fragmentation and geopolitical conflict, many governments and businesses are investing in resilience. That imperative has coincided with the emergence of AI, a technology that can expand the frontier of what is possible. As a result, technology security is becoming a pillar of national economic security strategy.

As we discuss in our latest Cyclical Outlook, “Growth Holds, Risks Widen,” the result has been an unprecedented wave of investment commitments to expand AI-related infrastructure. At the time of this writing, announced capital spending by large U.S. technology companies points to more than $1 trillion of investment in 2026, according to company filings, with roughly $1.5 trillion in additional outlays forecast thereafter.

But AI was never simply a U.S. investment story. The infrastructure buildout is supporting U.S. demand, production across the global technology supply chain, and increasingly investment in other economies. That has made AI an important source of support for both the U.S. and global expansions.

By the same token, it is also becoming an important cyclical risk. Crucially, AI investment does not have to collapse for its contribution to growth to fade. Because economic growth depends on the change in spending rather than its level, even still-high investment can provide a diminishing impulse if its growth rate slows.

Below, we highlight three observations about how the AI investment cycle is already reshaping the global economy.

Figure 1: AI’s contribution to real U.S. growth has fluctuated and is modestly net positive

Stacked bar and line chart showing the net AI-related contribution to quarterly U.S. GDP growth from March 2023 to June 2026. Gains from information technology equipment and from software and research and development were largely offset by negative contributions from computer equipment net exports. As a result, the total fluctuates, but averages between 0 and 1 percentage point.
Source: U.S. Bureau of Economic Analysis National Income and Product Accounts data and PIMCO calculations through 30 June 2026

But that substantially understates the scale of the investment boom itself. We estimate AI-related investment has contributed roughly 1.2 percentage points to the 2.7% average annualized growth in U.S. domestic demand over the same period (see Figure 2). In other words, the boost to U.S. spending has been much larger than the boost to U.S. production because a significant share of that spending has been on imported goods.

Figure 2: AI has driven meaningful contributions to U.S. domestic demand

Stacked bar and line chart showing the gross contribution of AI-related investment to quarterly U.S. real domestic demand growth from March 2023 to June 2026. Driven mainly by information technology equipment and by software and research and development, the total contribution rose from generally below 0.6 percentage points through 2024 to fluctuating between roughly 0.6 and 1.8 points from 2025 onward.
Source: U.S. Bureau of Economic Analysis National Income and Product Accounts data and PIMCO calculations through 30 June 2026

Direct investment is not the only channel through which the AI boom is supporting the U.S. economy. AI-related optimism also appears to be supporting growth through financial conditions. Expectations for higher future productivity and earnings have contributed to strong U.S. equity valuations, boosting household wealth and supporting consumption.

Using the Federal Reserve’s framework for estimating the growth impulse from financial conditions (see our 30 September 2026 Macro Signposts), we estimate that the equity wealth channel has provided roughly an additional 0.5–0.7 percentage point of support for growth – roughly 1x to 1.5x the growth impulse of the investment itself.

Taken together, these estimates suggest that AI-related forces have provided meaningful support to U.S. growth, even though the direct domestic investment effect is considerably smaller than the headline capex figures might imply.

Figure 3: U.S. and other developed markets are importing AI-related components

Line chart showing AI-related imports as a share of GDP for the U.S., the eurozone, and Sweden, with a shaded range for other developed markets, from 2023 to June 2026. U.S. imports rose steadily from 2025 to about 1.7% of GDP, well above the eurozone and the range for other developed markets, and Sweden's imports climbed in 2026.
Source: UN Comtrade Database and PIMCO calculations as of 30 June 2026

Figure 4: AI-related exports have become a meaningful share of key producers’ overall GDP

Line chart showing AI-related exports as a share of GDP for Taiwan and South Korea, with a shaded range for other emerging markets, from 2023 to June 2026. Taiwan's exports rose from about 5% to roughly 32% of GDP, while South Korea's climbed sharply in 2026 to more than 15%.
Source: UN Comtrade Database and PIMCO calculations as of 30 June 2026

In other words, high import content limits the direct U.S. growth contribution from AI investment, but the U.S. simultaneously exports part of the investment impulse to the rest of the world. The U.S. capex boom is therefore increasingly supporting a much broader manufacturing and trade cycle, particularly across the Asian technology supply chain.

Figure 5: Global industrial production of computers and electronics is on a multi-year upswing

Dual-axis line chart showing growth in global industrial production for computers and electronics compared with growth in all other core industrial production from 2019 to August 2026. Since 2024, growth in computer and electronics production has risen to roughly 11%, while growth in other industrial production has slowed to about 1%.
Source: Various national statistical agencies, Haver Analytics, and PIMCO calculations as of August 2026. PIMCO Global IP (industrial production) data aggregates industrial production across sectors and countries using TIVA (trade in value added) weights.

1 François de Soyres, Alex Haag, Mike Liu, and Eva Van Leemput. “The Global Trade Effects of the AI Infrastructure Boom.” U.S. Federal Reserve FEDS Notes (13 February 2026).

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