Corporate AI investment drives earnings momentum, with NVIDIA and Micron posting strong gains amid subdued volatility.
Global AI spending has reached nearly 3% of GDP annually, fueling corporate growth and market momentum despite geopolitical tensions. NVIDIA’s data center revenue jumped 92% to $75 billion, while Micron shares surged 248% year-to-date, underscoring the sector’s strength.
The VIX, a measure of market volatility, remains at 17, below its 12-month average, as investors focus on AI-driven earnings rather than global conflicts. Companies like PSEG and Honeywell report rising demand for data center infrastructure, though PSEG trades near its 52-week low.
Analysts note the market’s desensitization to geopolitical risks, with AI investment acting as a key growth catalyst. Hardware and software spending continues to accelerate, supporting equity performance.