US Would Be In 'Recession' Without AI, As Spending Goes 'Through The Roof,' Comprising 45% Of S&P 500 CapEx - iShares Expanded Tech Sector ETF (ARCA:IGM)

Economic Dependence on AI - The U.S. economy is heavily reliant on a surge in artificial intelligence (AI) investment to avoid recession, with significant capital infusion into AI infrastructure being crucial for economic stability [1][2] - AI-related spending accounted for 62.5% of the total 1.6% GDP growth in the first half of 2025, indicating that without AI, the U.S. would be in a recession [2] Technology Spending Trends - Technology and related stocks now represent a record 45% of all S&P 500 capital expenditure (Capex), marking a nearly 20 percentage point increase over the last decade [3][4] - This figure surpasses the peak of approximately 39% seen during the 2000 Dot-Com Bubble, highlighting a significant shift towards the "new economy" [4] Investment in Data Centers vs. Traditional Structures - Real private nonresidential fixed investment in data centers has increased nearly 300% over the past three years, while inflation-adjusted investment in traditional structures has remained flat [4] Capital Expenditure in Commodity Sectors - The capital expenditure weight for commodity sectors in the S&P 500 has halved since 2015 to just 15%, nearing its lowest level in 45 years [5] AI Utilization and Market Sentiment - Despite concerns of overbuilding and questionable demand, current GPU utilization stands at 80%, contrasting with the idle fiber optics of the 1999 dot-com era [5][6] AI-Linked ETFs Performance - A list of AI-linked ETFs shows varying year-to-date and one-year performance, with notable performers including Defiance Quantum ETF (29.69% YTD) and iShares Expanded Tech Sector ETF (26.37% YTD) [6]