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Veteran Wall Street investor Ed Yardeni and Goldman Sachs are warning about the AI market showing bubble-like characteristics. Yardeni highlights the risks of overinvestment in the AI sector, with $330 billion invested in 26,000 AI startups over three years, many of which are yet to turn a profit. Goldman Sachs predicts that at $1 trillion, the AI buildout may struggle to earn appropriate ROI due to inefficiencies and lack of high-value use cases.
Goldman Research Head Skeptical on AI Returns Despite Massive Spend https://t.co/kfW8hakQva
🧵 Today I was on @SquawkStreet on @CNBC to talk about the bubble in AI stocks. @GoldmanSachs put out a report warning capex for AI was way too high, given lack of high value use cases. Goldman is right on, but does not address other crippling issues facing AI. Thread. 1/15 https://t.co/mHjfg4df9M
GS's head of equity research argues at $1T the AI buildout will struggle to earn an appropriate ROI as efficiency improvements won’t drive multiple expansion “because cost savings just get arbitraged away.” https://t.co/o3dDeDFKcM https://t.co/VFPQCsDRWE
