Artificial intelligence has propelled the stock market to all-time highs, but Goldman Sachs (NYSE:GS) recently warned that once AI spending slows down, the stock market can tank by 20%. A research note from Goldman Sachs Analyst Ryan Hammond cited the danger of hyperscalers inevitably cutting back on AI expenditures, according to Fortune.
"A reversion of long-term growth estimates back to early 2023 levels would imply 15% to 20% downside to the current valuation multiple of the S&P 500," Hammond reportedly wrote in his research note.
