November 12, 2025: Special Edition: AI Infrastructure

 

Artificial intelligence (AI) makes daily headlines, and investors are questioning if businesses’ AI-related investments can continue at this pace. 

This is what we know:

  • The money spent on data centers, software, and other AI-related investments reveal the structural shifts occurring in the economy. 

  • This surge is being led by hyperscalers, like Microsoft, Amazon, Meta, and Alphabet, which are collectively projected to spend hundreds of billions on AI-related capital expenditures this year.

  • The boom includes massive data center construction, hardware purchases, and early-stage investments in supporting infrastructure like power grids. 

  • A popular expression in the capital market is “money flows where it’s treated best.” In this context, we could say “capital is flowing toward AI because that’s where expected productivity gains are the strongest.”

 

The financial markets are being influenced by a mix of factors this week, including the following:

Commodity Prices: Fluctuations in the cost of oil, natural gas, or other key commodities can affect inflation expectations and the profitability of many industries.

Government Reopening: The US Senate's approval to end the government shutdown has provided a boost to sentiment.

 

For the week of November 10th, 2025, list the U.S. economic calendar, releasing several key reports, and on which day:

  • Tuesday – Veterans Day

  • Wednesday – Business Optimism Index

  • Thursday - CPI

  • Friday – Retail Sales