Goldman Sachs warned that U.S. equities could face a 15% to 20% hit if long-term growth expectations tied to artificial intelligence retreat to early-2023 levels. Analyst Ryan Hammond cited the risk of hyperscalers trimming AI capital outlays in late 2025 and 2026 even as tech giants keep spending aggressively, with Meta signaling up to $600 billion on AI over three years and Microsoft inking a $17.4 billion infrastructure pact with Nebius. The market’s reliance on AI leaders remains acute: Nvidia accounts for roughly 7% of the S&P 500, and the top eight AI-heavy firms comprise over 36% of the index. The note underscores how a moderation in AI enthusiasm could compress multiples across a concentrated market.
Related articles:
