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Goldman Sachs: AI Super Cycle Begins, Names 16 US Tech Stocks to Benefit

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Goldman Sachs reports that an AI capital expenditure "super cycle" has begun, with massive cloud providers expected to increase spending significantly.
  • The investment bank identifies 16 U.S. tech stocks, including Apple and AMD, poised to benefit from this AI infrastructure boom.
  • These companies, spanning semiconductors, equipment, and software, are expected to capitalize on the growing demand for AI-related hardware and services.

A "super cycle" of AI capital expenditure has officially begun, according to a new report from Goldman Sachs. The investment bank predicts that major cloud service providers will dramatically increase their spending on data centers and computing infrastructure. This surge is expected to fuel significant growth for a select group of U.S. technology companies.

Goldman Sachs estimates that hyperscalers' capital expenditures will grow by 84% this year to $757 billion, and then climb to $920 billion in 2027. This massive investment reflects the ongoing global race in artificial intelligence and the urgent need for enhanced infrastructure to support it.

a super cycle of AI capital expenditure has officially begun

— Goldman SachsThe investment bank's latest report on the AI market.

Amidst an environment of higher capital costs and limited room for price-to-earnings ratio expansion, Goldman Sachs highlights that companies consistently delivering profit growth and seeing upward revisions from analysts will be key drivers of stock performance. The report identifies 16 U.S. tech firms across various sectors, including semiconductors, hardware, and software, as prime beneficiaries of this AI investment wave. Among those named are Apple, AMD, Broadcom, Lam Research, Applied Materials, Oracle, and MongoDB.

Hyperscalers' capital expenditures are expected to continue to grow at a high speed

— Goldman SachsEstimating the spending of major cloud service providers.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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