Technology CapEx spending is exploding: The CapEx-to-Sales ratio of developed market tech firms is up to a record 11.5%. Over the last 2 years, this percentage has risen +4 points, far outpacing any other 2-year increase in history. To put this into perspective, the previous peaks seen in the 1990s and early 2000s were at 9.0% and 8.5%. By comparison, the developed market excluding tech CapEx-to-Sales ratio stands at just 7.0%, below its own long-term average. The AI buildout is also driving investment spending higher in other sectors, with utilities now leading at a CapEx-to-Sales ratio of ~23%, well above its long-term average of ~15%. The AI investment boom is reshaping capital allocation across the entire economy.(The Kobeissi Letter)