- Goldman Sachs warns a major slowdown in AI investment by Big Tech could cut the S&P 500’s valuation multiple by up to 20%, but adds the current risk is below the level of previous bubbles. The fallout depends on hyperscaler capital expenditure trends. Analysts expect a deceleration in late 2025 or 2026, though guidance keeps rising.
Another day, another record high for the S&P 500, and another investment bank has a research note asking whether AI stocks are in a bubble. Today it is the turn of Goldman Sachs, where Ryan Hammond and his team have made a lengthy and thoughtful attempt to assess whether Nvidia et al. are heading for a crash.
