Record Profits. Restless Markets.
Nothing is as certain as change.
Americans spend. It is a significant part of what we do, and as a group we are remarkably consistent. Large corporations are not. They are cyclical — and for the trillion-dollar giants like Nvidia, Apple, and Alphabet, that cyclicality moves the entire world economy. These companies held hundreds of billions in cash. For years they used it to save and to buy back their own stock. Then, in 2023, they made the decision not to be left behind in the race to build artificial intelligence. The spending began.
Chart of the Week
The chart above shows what that decision looks like. The most powerful computers on earth have grown fiftyfold in just four years, leaping from megawatts to gigawatts. The largest sites being planned draw the power of small cities. This is the economic story of 2023 to 2026. As we read it, we should ask: What comes next?
