How much did AI capex contribute to US GDP growth?

AI capital expenditures accounted for nearly a fifth of the year-over-year increase in headline GDP in Q4 2025.

What is the 'wealth effect' and how did it impact Q4 2025 GDP?

The wealth effect is when increased wealth from investments leads to higher consumer spending. In Q4 2025, a $3.8 trillion gain in tech stock values is estimated to have driven consumption, adding 0.3 points to GDP growth.

Which tech stocks contributed to the wealth effect in 2025?

The wealth effect was influenced by the rise in value of households' holdings in Magnificent Seven tech stocks in 2025.

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

AI Fuels US GDP: Nvidia Earnings Soar

26 Feb

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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.