Treasury Secretary Scott Bessent isn't worried about an AI bubble. Not even a little bit. Speaking on CNBC's "Squawk Box" Tuesday, he dismissed the growing chorus of concerns that the U.S. economy has become dangerously hooked on artificial intelligence spending. His take? The investment boom is actually spreading into a much broader industrial comeback.

Beyond the Data Centers: Real Factories, Real Jobs

The backdrop here matters. Recent reports suggest that AI-related business investment may have driven up to half of GDP growth in the first six months of the year. That's led some analysts to worry about what happens if the AI train slows down—or worse, derails entirely.

Bessent acknowledges the obvious: the "AI build out has been tremendous" and will keep going. But he's not buying the over-reliance narrative. Instead, he pointed to something tangible—a recent trip to his hometown of Charleston, South Carolina, where Boeing Co. (BA) is undertaking a "substantial expansion" of its Dreamliner plant. The project is adding 1,000 high-paying manufacturing jobs, the kind of investment that doesn't vanish when market sentiment shifts.

This isn't just one anecdote from one city, according to Bessent. He predicts the trend will accelerate next year, driven by upcoming trade deals and tax legislation. The result? A "broadening out of the CapEx cycle" where capital expenditure spreads beyond Big Tech and into the wider economy.

"Historically, CapEx always leads to more jobs," he noted—a straightforward theory of how economies actually grow when companies invest in real stuff.

The China Factor: No Room for Second Place

Even while emphasizing manufacturing breadth, Bessent made clear that maintaining an edge in artificial intelligence remains absolutely vital. He described the AI competition with China as "pass/fail"—there's no participation trophy in this race.

Channeling the Greenspan Years

Bessent framed his overall economic outlook with a historical comparison to the 1990s Alan Greenspan era. He expressed enthusiasm about the prospects for "substantial non-inflationary growth" driven by deregulation and technology-fueled productivity gains.

This environment, he argued, could deliver the economic sweet spot: lower interest rates alongside higher growth. It's the kind of scenario policymakers dream about—where the economy expands without triggering inflation alarms that force the Fed to slam the brakes.

His optimistic take on tech sustainability echoes recent commentary from market analysts like Wedbush's Dan Ives, who has characterized the current landscape as the early innings of an AI revolution rather than a speculative bubble waiting to pop.

Market Response

Markets seemed to like what they were hearing. On Wednesday, futures for the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher following a positive close Tuesday.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 respectively, both ended higher Tuesday. The SPY climbed 0.94% to $675.02, while the QQQ advanced 0.62% to $608.89.

Bessent's message ultimately boils down to this: yes, AI investment has been massive, but the economic story is getting more diverse, not more concentrated. If he's right, the foundation for growth is broader and more resilient than the bubble-watchers fear.