AI Bubble Or Revolution? Goldman Sachs Research Takes A Look
Portfolio Pulse from Khyathi Dalal
Goldman Sachs Research predicts AI investment to peak at $200 billion globally and $100 billion in the U.S. by 2025. The majority of AI investments will come from hardware investment and increased spending on AI-enabled software. The firm also believes the world is in a new technology cycle that will lead to further outperformance in the sector. The Technology Select Sector SPDR Fund (XLK) posted a 37% YTD increase, while the SPDR S&P 500 ETF Trust (SPY) saw a 16% surge. Notable players in the AI chips market include Qualcomm (QCOM), Nvidia (NVDA), Intel (INTC), Advanced Micro Devices (AMD), and C3.ai (AI).

September 19, 2023 | 11:07 pm
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POSITIVE IMPACT
C3.ai grew 146% on a YTD basis, indicating a strong performance in the AI market.
C3.ai's strong YTD performance indicates a positive trend in the AI market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Advanced Micro Devices saw a 59% YTD surge, indicating a positive performance in the AI chips market.
AMD's positive YTD performance indicates a positive trend in the AI chips market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Goldman Sachs predicts a surge in AI investment, indicating a positive outlook for the sector.
Goldman Sachs' prediction of a surge in AI investment indicates a positive outlook for the sector, which could potentially boost the firm's advisory and investment banking revenues.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Intel saw a 36% YTD surge, indicating a positive performance in the AI chips market.
Intel's positive YTD performance indicates a positive trend in the AI chips market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Nvidia skyrocketed 204% YTD, indicating a strong performance in the AI chips market.
Nvidia's strong YTD performance indicates a positive trend in the AI chips market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Qualcomm saw a 3.3% YTD growth, indicating a positive performance in the AI chips market.
Qualcomm's positive YTD performance indicates a positive trend in the AI chips market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a 16% YTD surge, indicating a positive trend in the broader market.
The positive YTD performance of SPY indicates a positive trend in the broader market, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) posted a 37% YTD increase, indicating strong performance in the tech sector.
The strong YTD performance of XLK indicates a positive trend in the tech sector, which is expected to continue given the predicted surge in AI investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100