“Surging capex spending related to AI will likely prevent a major increase in the buyback payout ratio," the bank says.
When AI’s ‘inevitable slowdown’ comes it could tank S&P 500’s valuation multiple by up to 20%, Goldman Sachs says
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AI spending added 0.5% to GDP growth, and the Magnificent 7 stocks are driving the market
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With markets on edge over AI bubble fears, chip stocks shudder as investors send Nvidia down 3% despite 56% growth in data center revenue
The looming danger, Goldman says, is when Amazon, Alphabet, Amazon, Meta, Microsoft, and Oracle decide to reduce their capex.
"We're notoriously undersupplied in our housing market. Does that mean it's going to be even more difficult for us to build…
“The crash is separating real AI revenues from companies that only have AI PowerPoints.”
“It seems you can’t go anywhere without talking about AI,” says Aditya Bhave, senior U.S. economist at Bank of America Research.
“In the absence of tech-related spending, the U.S. would be close to, or in, recession this year,” George Saravelos says.
A historic capex surge, thin AI revenues, and extreme index concentration leave investors one disappointment away from a…
