This note is a follow up to my report in August on AI adoption and the energy bottleneck that can stunt its rise: The Bottleneck.
Below we will look at the AI dynamics from a number of different perspectives, namely: how sustainable is the CAPEX spending? This may turn out to be the most important dynamic for equity markets in 2026.
Before we begin, look at the potential economic scenarios produced by the Dallas Fed. Either we all die by 2040 due to AI, or GDP per capita soars and we are all much wealthier. Thanks guys! Let’s see if we can do better than this.
