AI Buildout is Boom 'Not Bubble,' Says Jared Gross

• AI buildout is characterized as a 'massive capital investment boom' on an unprecedented scale and pace, explicitly stated as 'not a bubble' but a 'real economic engine'.
• Benefits are sequenced: initially favoring 'picks and shovels' suppliers (chip sellers, data center builders, energy providers), then moving to AI providers (model builders, hyperscalers), and eventually leading to widespread tech dissemination and global productivity gains.
• While acknowledging that there will be 'losers' and overvalued companies, the overall economic transformation driven by AI is considered profound and real.
• The debt issued by hyperscalers for AI buildout is viewed as a source of diversification in the investment-grade market due to their strong balance sheets, despite some concerns about rapid growth.

Jared Gross of JPMorgan Asset Management asserts that the current AI buildout represents a massive capital investment boom, not a bubble, comparing it to past industrial revolutions. He outlines the sequencing of benefits, initially favoring 'picks and shovels' suppliers, then shifting to AI providers and broader dissemination, leading to widespread productivity gains. Investors are advised to focus on diversification and active management.