The paradox is that GDP strength is narrow. Growth is clustered in AI-linked sectors and in higher-income households that account for nearly half of consumption. Middle- and lower-income households, by contrast, are seeing flat or declining spending power, increasingly reliant on credit. Policymakers may be celebrating strong prints, but common households are not feeling the gains evenly.
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For investors, this makes the second wave of AI adoption critical. Beyond Nvidia, Microsoft, and Oracle, companies like Symbotic (SYM) are automating warehouses with AI-driven robotics, displacing labor while boosting efficiency. Automatic Data Processing (ADP) is embedding AI into HR and payroll functions, while ServiceNow (NOW) is integrating AI into workflow automation across enterprises. These names highlight how the AI trade is broadening beyond chips and cloud into the everyday fabric of corporate operations — in ways that may widen inequality even as they support productivity gains.
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The upshot: AI-driven capex is propping up GDP and fueling market leaders, but its benefits are narrow and its costs — labor displacement, uneven consumption, and concentrated wealth effects — are already visible. If the AI capex cycle slows, or if households at the middle and bottom retrench further, the headline numbers could roll over far faster than they suggest.

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