The Renaissance of AI: A Look at Phase 2 AI Stocks from Goldman Sachs

Artificial intelligence has not only revolutionized the technology industry but has also captured the hearts of investors. In a recent analysis by Goldman Sachs on the best Phase 2 AI stocks, Palantir Technologies ranks remarkably high. During the pandemic, technology stocks surged due to increased demand for digital products and services. Today, however, it is the innovation and performance in the field of artificial intelligence that are attracting market interest amidst high interest rates. The versatility of AI technology makes it appealing across various sectors and leads investors to dream of astronomical returns. The most prominent example: an AI stock whose price growth has increased by an impressive 1,100% since October 2022. An investment of $100 back then would be worth $1,200 today. Looking to the future, it becomes clear that other sectors associated with AI could also benefit from massive investments. OpenAI CEO Sam Altman predicts the construction of seven AI data centers in the US which would require a total of 35 gigawatts of power. In a detailed report by Goldman Sachs, the AI field is divided into four categories: AI leaders on Wall Street, capacity providers, product and software manufacturers, and those benefiting from AI adoption. Notably, the category of capacity providers already achieved average gains of 22% by July, while the utility sector has emerged as a remarkable outperformer in the S&P Index. The US energy demand forecasts highlight the importance of investments in these areas. The consulting firm Boston Consulting Group estimates that AI could account for about 16% of energy consumption in the US by 2030. Revenue growth in the semiconductor sector, IT market, and non-semiconductor hardware firms also reflects positive optimism. Non-semiconductor hardware revenue could rise to $450 billion by the end of 2025. Palantir Technologies plays a central role in this. The company not only offers solutions for governments but also for the private sector and benefits from direct collaboration with its clients. Quarterly sales in the US rose by a full 70% in the second quarter, and the company recorded significant contract closures. The prospect for high returns is given with PLTR, but some investors see even greater promises in other AI stocks. Those seeking more affordable AI investments might find opportunities, according to reports from Goldman Sachs.