By Lewis Krauskopf

NEW YORK (Reuters) -Spending updates this week from U.S. megacap companies that are investing massively in artificial intelligence could jolt the AI trade that has been a primary driver of the record-breaking U.S. stocks rally.

Capital spending is a crucial component of the AI trade that has propelled equities following the launch of AI assistant ChatGPT in November 2022. With the benchmark S&P 500 up about 17% year-to-date and 90% since the bull market began just over three years ago, investors are on guard for any weakness while wary of parallels with the dot-com market bubble 25 years ago.

Investment by the biggest companies, including Microsoft, Alphabet, Meta Platforms, and Amazon, serves to build out the infrastructure that supports the burgeoning industry while

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