AI Spending Boom and Rapid Adoption Signal Further Upside, Fidelity Says
Fidelity International expects the global rally in artificial intelligence stocks to push higher, arguing that ambitious spending plans and accelerating user adoption outweigh mounting concerns about an overheated market. The view comes from new commentary reported by Bloomberg, which noted that Fidelity and other large asset managers see durability in the AI cycle despite rising warnings of a potential bubble.
Fidelity’s Case: Capex and Adoption Still Point to Growth
According to Bloomberg’s reporting on Fidelity’s outlook, AI developers are planning massive, multi‑year capital expenditures tied to data centers, high‑performance computing hardware, and model training infrastructure. These investments, Fidelity says, indicate that AI demand remains structurally strong—even if market sentiment is wavering.
Two key drivers underpin their stance:
- Aggressive infrastructure spending: Big Tech and leading AI labs have laid out spending plans that continue to rise, supported by long-term expectations for cloud demand, model improvement cycles, and enterprise adoption.
- Rapid user uptake: Consumer and enterprise adoption metrics continue to accelerate. Surveys from McKinsey’s latest State of AI analysis show that almost all organizations now deploy AI tools in some capacity (McKinsey).
Fidelity argues that these fundamentals point to continued earnings growth for the companies powering AI—softening the case for a near-term reversal in the sector.
Bubble Fears Are Rising — But Not Universal
The bullish stance comes at a time of growing skepticism. A Bank of America fund manager survey recently showed that investors now see an AI bubble as the top “tail risk” for markets (WSJ). This reflects concerns about:
- Steep valuations in leading AI equities
- Concentration of returns in a handful of mega-cap tech names
- The rapid pace of capex and questions about its long-term monetization
Yet other research counters the bubble narrative. Gartner expects worldwide AI spending to reach $1.5 trillion in 2025, a sign of broad, sustained investment across industries (). And consumer adoption remains in an early growth stage despite billions of users, according to Menlo Ventures’ analysis of the consumer AI market.