Goldman Sachs: AI remains one of the biggest investment opportunities

Recently, heads of major tech companies such as Meta Platforms CEO Mark Zuckerberg, Amazon Executive Chairman Jeff Bezos, and OpenAI CEO Sam Altman have warned of an “AI bubble,” where stock market valuations, massive speculation, and market euphoria begin to mirror the dot-com bubble that eventually led to the stock market crash 25 years ago.

Meta has announced plans to spend more than $100 billion on AI and AI infrastructure over the next three years, Apple plans to invest more than $500 billion in the US over the next four years, including AI and data center development, while Amazon is spending about $70 billion on data centers and related infrastructure this year. As the New York Times recently reported, a handful of AI companies will account for most of the growth in the US market by 2025. Some Wall Street traders are arguing that the valuations of these companies' stocks are already overvalued.

Meanwhile, another part of Wall Street remains bullish on AI. Goldman Sachs and its wealthy clients see AI as one of the biggest investment opportunities of the century. Brittany Boals Moeller, regional head of Goldman Sachs’ San Francisco-based private wealth management division, doesn’t see a bubble, though she acknowledges that there are overhyped stocks and clients should be cautious about investing in AI.

The difference, however, is that real money has fueled the AI boom, as opposed to the dot-com boom. Nvidia is now valued at about 33 times projected earnings, a fraction of the price-to-earnings multiple Cisco had at 200 before it collapsed. The company’s stock is still trading about 10% below its peak valuation in 2000. A recent McKinsey study found that the use of AI in the corporate world could boost global productivity by as much as $4.4 trillion.

Goldman Sachs and its clients are closely watching the impact of AI on energy use, health care, and personal productivity. The rapid rise of AI data centers is a major factor in rising energy bills in the United States. After years of relatively stable prices, electricity prices in the United States have increased sharply, increasing financial pressure for millions of consumers already facing inflation. Electricity prices in the United States have increased 36% since 2021, with an average annual increase of about 7%, triple the 12% increase from 2009 to 2020. Residential electricity prices are expected to continue rising, with the U.S. Energy Information Administration (EIA) forecasting an average price of 17.7 cents/kWh in 2026, up from 16 cents/kWh in 2024.

Source: https://vtv.vn/goldman-sachs-ai-van-la-mot-trong-nhung-co-hoi-dau-tu-lon-10025111217264256.htm