Goldman Sachs refutes claims of an artificial intelligence (AI) bubble and anticipates an AI revolution, citing strong performance and potential economic opportunities. The financial powerhouse predicts substantial growth in global AI investments, potentially reaching $200 billion by 2025.
Goldman Sachs Rejects AI Bubble claims and foresees an AI Revolution
Despite concerns and comparisons to the late 1990s dot-com bubble, Goldman Sachs firmly denies the existence of an artificial intelligence (AI) bubble. Instead, the financial giant believes that we are on the brink of an AI revolution, characterized by robust performance and significant economic opportunities.
Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs, asserts that we are still in the early stages of a new technology cycle, poised to deliver strong performance. The company forecasts a substantial increase in global AI investments, with the potential to reach $200 billion by 2025. This surge is attributed to the economic potential offered by generative AI, a subset of AI focused on content generation using large language models. Previous reports suggest that generative AI could contribute up to $4.4 trillion to the global economy.
AI stocks have demonstrated impressive performance throughout the year, contributing to the overall recovery of the S&P 500 index following setbacks in 2022. According to the report, the valuations of leading AI stocks are not as extended as seen in previous periods, such as the internet bubble that burst in 2000. Additionally, these companies maintain strong balance sheets and high returns on investment.
While the outlook for the AI sector appears favorable, some experts advise caution and recommend a thoughtful approach when considering AI sector investments. Oppenheimer introduced the PEARL framework, designed to guide individuals in making informed decisions after conducting thorough research.
(AMAKA NWAOKOCHA, CoinTelegraph, 2023)