- 23 July 2026
Is today's AI infrastructure spending sustainable?
- PROFESSIONAL INVESTORS
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- 08.06.26
Artificial intelligence (AI) infrastructure spending continues to dominate equity market discussions. Companies exposed to the wave of capex have delivered exceptional earnings, but some investors doubt whether this level of spending is sustainable and will provide durable returns.
A selection of US companies' earnings growth expectations, for example, highlights the impact of AI acceleration, adoption, and the public release of ChatGPT. Earlier in the decade, their forward earnings ranged between 5% and 20%, then to over 50% in April this year following these developments. This growth reflects the demand for AI infrastructure, from data centres to semiconductors.
Despite this surge in earnings, valuations have not seen a similar spike, as investors remain concerned about the long-term strength of current fundamentals. Read this article to discover why some investors are so sceptical about the sustainability of AI infrastructure spending.






