More Signs of Growth Across AI and Europe

As Bezrokov explains, the divergence reinforces the importance of looking beneath the regional headlines. Rather than a synchronized European recovery, the data points to greater differentiation across countries and sectors. For investors, that may increase the importance of underlying country and industry exposures rather than treating Europe as a single macroeconomic trade.

AI becomes more than a technology story

In the U.S., economic data remained broadly consistent with recent trends. Second-quarter GDP growth was confirmed at a 1.5% annualized rate, down from 2.1% in the first quarter, while initial unemployment claims remained low at 203,000.

Taken together, the figures point toward an economy that is moderating rather than contracting, with the labor market continuing to provide an important source of resilience.

However, Bezrokov highlights that the more distinctive development came from the corporate sector.

Nvidia reported quarterly revenue of $96.2 billion, an increase of 106% from a year earlier. Data center revenue reached $89 billion, up 117% year over year. The company also guided to approximately $108 billion of revenue for the next quarter, plus or minus 2%, despite assuming no data center compute revenue from China.

The results provide further evidence of the extraordinary demand for AI infrastructure. However, as Bezrokov notes, the investment debate is beginning to move on.

The question is less about whether companies will continue spending on AI and more about what that investment can ultimately generate. As capital expenditure rises, investors are likely to place greater emphasis on productivity gains, earnings growth and returns on invested capital, particularly in areas of the technology sector where valuations already reflect substantial expectations for future growth.

AI buildout reaches the wider economy

Bezrokov makes a key point: there is more to the AI investment cycle than technology-sector earnings. The scale of infrastructure spending is increasingly visible in broader U.S. economic data. The goods trade deficit widened to $118.8 billion in July from $101.4 billion in June, as imports increased 3.7% and exports declined 2.9%.

The composition of those imports was particularly notable. Capital-goods imports rose 11.3% during the month to approximately $140 billion, leaving the category almost 47% above its level a year earlier.

Capital goods cover a broad range of products, meaning the increase cannot be attributed entirely to AI. However, the category includes computers, computer peripherals, semiconductors and telecommunications equipment, all important components of the current data center buildout.

Recent GDP data tells a similar story, with continued strength in business investment across equipment and intellectual property, including information-processing technology.

Crucially, Bezrokov suggests that AI is becoming more than an equity market theme. Its economic footprint is now large enough to influence capital expenditure, imports and even the composition of U.S. growth.

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