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Watch Our Second Quarter 2026 Economic Commentary with Mason D. King, CFA, Vice President, Director of Public Equity Investment Strategies, Portfolio Manager

Luther King Capital Management Second Quarter 2026 Review

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Artificial intelligence remains the defining investment in the economy.  Business spending on equipment increased 15.8% during the first quarter from a year earlier, led by information processing equipment, while investment in intellectual property products (primarily software) rose 13.8%.  Data center construction continued to accelerate, increasing more than 22% on an annualized basis.  Taken together, investment in AI-related equipment, software, and infrastructure accounted for an estimated three-quarters of first-quarter Gross Domestic Product growth.  That follows the final quarter of last year, when economic growth was just 0.5%, underscoring how important the AI investment cycle has become to the broader economy.

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