MADE IN AMERICA BUT NOT MADE BY AMERICANS
Big Tech and the Trump administration are driving an industrial boom that prioritize hardware investment over labor growth, according to BCA Research.
The AI boom ignited by ChatGPT’s launch in late 2022 has continued to fuel staggering capital outlays and data center expansion despite a brief crisis of confidence sparked by China’s cheaper DeepSeek model and lingering market concerns over U.S. President Donald Trump’s tariff policies.
Trump’s policies – preferential tariffs, deregulation and tax deductions – are pouring kerosene on this tech boom, BCA analysts note.
Citigroup recently forecast Big tech’s AI spending to cross $2.8 trillion by 2029, up from an already eye watering forecast of $2.3 trillion.
However, this boom is not helping employment, BCA says. “The US economy is gorging on machines, but not workers.”
The latest data offers some early glimpses to their view, as U.S. private payrolls dropped in September, according to the ADP employment report released on Wednesday.
The analysts note that the divergence between economic growth and employment will continue and will lead to further Federal Reserve cuts.
Reflecting these trends, BCA has upgraded global equities to “overweight,” arguing that the industrial boom will buoy growth.
Additionally, the brokerage upgraded the global industrials sector from “underweight” to “overweight,” pointing out that the best prospects now lie with companies offering energy equipment, cooling, and infrastructure for the tech boom, largely within industrials.
Reuters recently reported that Corintis, a Swiss startup promising more rapid liquid chip-cooling technology, has raised $24 million and added Intel 
INTC CEO Lip-Bu Tan to its board as artificial intelligence fuels demand for better heat management tools for semiconductors.
BCA notes that as opposed to tech, which is highly concentrated in the U.S., many of these industrial companies happen to be in Europe and Japan.
(Joel Jose)
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