Home / Business and Economy / AI Fuels US GDP: Nvidia Earnings Soar

AI Fuels US GDP: Nvidia Earnings Soar

26 Feb

Summary

AI capex comprised nearly a fifth of GDP growth.
Tech stock gains added $3.8 trillion to wealth.
Wealth effect boosted consumption by 0.4 percentage points.

Artificial intelligence capital expenditures are now a substantial driver of U.S. economic growth, according to Pantheon Macroeconomics. In the fourth quarter of 2025, AI capex represented nearly one-fifth of the 2.2% year-over-year increase in headline GDP.

Furthermore, the rise in tech stock values has had a notable 'wealth effect' on consumer spending. The value of household holdings in Magnificent Seven tech stocks increased by an estimated $3.8 trillion throughout 2025. Based on historical patterns, this increase in perceived wealth is estimated to have boosted consumption by 0.4 percentage points in Q4 2025, directly contributing 0.3 points to overall GDP growth.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.