Macro Minute: Week of August 11, 2025

Today I want to cover something that may be surprising to some of you like it was for me. We all know that many of the largest companies have been spending a lot of money on AI. As these companies have been reporting earnings, we are starting to piece together the sheer amount of money that is, has been, and will continue to be spent on AI.

The first chart is showing just how much this AI spending is contributing to the U.S. economy via GDP growth. The majority of the U.S. economy is consumer spending, and that usually drives GDP growth. What we have seen in the last six months is that AI spending is actually adding more to GDP growth than the U.S. consumer. This is quite incredible. 

The above chart from Christopher Mims of the Wall Street Journal, is showing how much CapEx from Meta, Google, Microsoft, and Amazon has been spent.  

Finally, this last chart from Puru Saxana of AlphaTarget is showing that greater than $3 trillion dollars of spending is planned through 2028.  

With this much investment, it is no wonder that the tariffs have been shrugged off by the market. The hope is that this investment leads to an increase in productivity in the total economy. Time will tell, but indications are that this could be more revolutionary than the internet was in the 1990’s and 2000’s. Putting numbers to this was helpful to me, maybe it will be for you. 

DISCLOSURES:

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Longview Financial Advisors, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Longview Financial Advisors, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Longview Financial Advisors, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the Longview Financial Advisors, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request.