Goldman Sachs: Potential in the Field of Artificial Intelligence

The rise of American technology stocks this year is unmistakable, driven by the excitement surrounding generative Artificial Intelligence (AI). An analysis by the investment bank Goldman Sachs suggests that this is not a typical speculative bubble. Rather, these companies continue to promise stable returns, fueled by a new wave of AI superstars from smaller tech firms as well as from non-technological sectors. However, Peter Oppenheimer, head of global equity strategy at Goldman Sachs, advises diversification to minimize risks. Since 2010, technology stocks have contributed 32% to the global and 40% to the US stock market—an impressive contribution supported by solid financial foundations. Notable is the performance of a small circle of major companies, particularly from the software and cloud computing sectors, which dominate the market thanks to their resources and profitability. The recent performance of these companies has been further enhanced by the increasing optimization around AI. Such developments lead to rising valuations, focusing on a small group of market leaders. Oppenheimer emphasizes that this reflects the typical pattern of technological innovation: capital and competition accumulate around cutting-edge technologies, which does not necessarily end in a financial bubble. More common is a phase of declining prices due to increasing competition, followed by market consolidation. The innovation leadership of large companies, which were already leading in the software and cloud wave, remains a distinctive characteristic of the current AI era. Flex Ltd. is an interesting example among the AI superstars identified by Goldman Sachs. With outstanding contributions in the areas of data centers and the automotive industry, the company provides essential solutions for the AI infrastructure. The CEO of Flex, Revathi Advaithi, highlights the strong demand for cloud solutions, a trend accelerating the development of data-driven technologies. Flex ranks 29th on the AI superstars list, with the possibility that other AI stocks could deliver higher returns in a shorter time span.