Goldman Sachs cautions around AI investments, saying stocks to most likely benefit are Meta, Alphabet, Google, Microsoft, Amazon
Per Market Insider
With all the buzz around AI, Goldman Sachs has recently warned people to be careful around artificial intelligence investments. The firm noted that the stocks most likely to benefit included Meta, Alphabet, Google, Microsoft, and Amazon.
The statement was given by Goldman Sachs chief US equity strategist David Kostin on Bloomberg TV. During this time, he noted that AI was most "likely to play out over a long-term period of time."
Kostin: "There's a lot of euphoria around it. And some of the stocks that are likely to benefit from [this are] the larger cap tech stocks that have done great: Meta, Alphabet, Google, Microsoft, Amazon to a certain degree."
Kostin still acknowledged that there was a lot of uncertainty regarding AI, saying that there were potential "issues of dislocated employees." He then talked about how tech companies would "outperform" but that it wasn't just because of AI.
Kostin: "(Tech companies will likely) outperform but it's not necessarily [AI] that lifts you to a to a higher level... And the question now is then: 'Well, over what period of time are the generative AI benefits that may inure to corporations?"
Toward the end of March, Goldman Sachs announced that they believe that AI platforms like ChatGPT could impact 300 million full-time jobs. They specified that this could be due to how certain jobs could be automated with the help of artificial intelligence.
The firm also noted that the risks were directed toward more white-collar workers than manual laborers. In the US and Europe alone, it was estimated that two-thirds of jobs could already be at risk.
Recently, the Bank of America said that AI was in a "baby bubble," closely like the dot-com era. This came as more companies were trying to invest into AI, with more talk of how artificial intelligence could replace multiple jobs.
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Other News:
- Goldman Sachs believes 300 million full-time jobs could be impacted by AI platforms like ChatGPT
- Bank of America says AI is in a 'baby bubble' like the dot-com era
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