AI Spending Projections Showcase Growth Potential

Core Insights - The investment in AI infrastructure is expected to significantly increase, with projections indicating that AI spending in the U.S. will rise from approximately 1.2% of GDP to about 5.6% by 2030, equating to around $6 trillion in total spending [2][3] Group 1: AI Spending Projections - AI spending is projected to grow substantially, reaching about 5.6% of U.S. GDP by 2030 from the current 1.2% [2] - This increase in spending is expected to total around $6 trillion by the end of 2030 [2] Group 2: Infrastructure Requirements - The expansion of AI requires comprehensive support, including investments in data centers, networking, and semiconductor capacity [3] - A holistic approach is necessary for supporting AI infrastructure, contributing to its growing share of GDP over time [3] Group 3: Investment Opportunities - There is an opportunity for investors to reposition their portfolios to benefit from the anticipated growth in AI spending [4] - The Alger AI Enablers & Adopters ETF (ALAI) focuses on companies that are leading in AI adoption and utilization [4] Group 4: Company Selection Criteria - The investment team behind ALAI conducts proprietary research to identify companies showing positive dynamic change, categorized into high-unit volume growth and positive life cycle change [5][6] - High-unit volume growth refers to companies experiencing rising demand, while positive life cycle change includes factors like new management or favorable regulations [6]