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Excess Returns · Tuesday, August 11, 2026

AI Spending Cycle is Only Halfway Through, Says T. Rowe Manager

Dom Rizziolan believes the current AI spending cycle is only about halfway complete, drawing a parallel to the Nasdaq's performance from Netscape's launch. He notes that the launch of ChatGPT roughly three years ago marks a similar point in the current AI cycle.

companyOpenAI

The tape

3 quotes
the replication of your 1998 thesis is that we are nowhere near the end of this capital cycle. I mean, I think you've talked about we're about halfway there. So, this would look more like a speed bump on that thesis, then the end of the road.
Jack Forhind
And if you look at that, and then you put, uh, the launch of Nasdaq from the launch of Chat GPT through today. It's literally the halfway point, right?
Dom Rizziolan
So, so Chat GPT was launched roughly three years ago. Uh, I know this because I took over our global technology strategy on December 1st, 2022, which was the day after Chat GPT was released November, November 30th, 2022.
Dom Rizziolan
Heard on Excess Returns — “We Asked T. Rowe's $8 Billion Tech Manager Why We Are in 1998 — And Why Software Is in Trouble, published Tuesday, August 11, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.06