Despite President Trump’s tariff war, U.S. corporate spending on IT equipment and software has surged, with the Magnificent 7 tech giants set to invest $650 billion in capex and R&D, surpassing the U.K. government’s annual public investments. This shift to “bits” over “bricks” may be driven by fear of missing out on the AI boom.

In the U.S., IT equipment and software spending has increased by 13.6% year-over-year, comprising over 40% of total private fixed investment. Private fixed investment in IT rose by 12.4% in the second quarter, while non-IT sectors saw a 4.9% decline, highlighting the dominance of tech spending in corporate America.

The rise in AI-related projects, including the launch of ChatGPT, has boosted both technology stocks like NVDA and the crypto market, showing a strong correlation between tech advancements and crypto growth. Trump’s administration’s pro-crypto stance and regulatory clarity have further supported the crypto market’s rise.

Read more at Yahoo Finance: Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push