AI’s trillion-dollar chip boom is spreading well beyond Nvidia ($NVDA). TSMC ($TSM), Broadcom ($AVGO), Micron ($MU) and AMD ($AMD) have all surged as AI spending expands across foundries, memory, CPUs, networking and packaging.

AI BOOM MAY REQUIRE U.S. SPENDING EQUAL TO 9% OF GDP America may need to spend roughly $3.5 trillion annually on AI services by 2032 — 8.8% of GDP — to justify today’s massive data-center investment, according to Columbia professor Stijn Van Nieuwerburgh. The risk is that expanding compute capacity drives AI prices and margins sharply lower, leaving revenues unable to support current investment. AI could still deliver major productivity gains — but economic benefits don’t necessarily translate into investor returns.

AI has the potential to reshape our economies. The ECB Blog explores the financing of AI investment in two posts. In this one we show that firms expect to rely overwhelmingly on their own resources to finance the transition