Goldman Sachs Rejects Early AI Bubble Talk on July 2, Sees Earnings-Driven Rally

According to Goldman Sachs' chief U.S. equity strategist Ben Snider on July 2, the AI trade remains earnings-driven rather than a speculative bubble. Despite significant gains in AI-related stocks this year, Goldman Sachs identified three investment themes: AI infrastructure (semiconductors, servers, data center hardware), power infrastructure (utilities and energy facilities), and lagging cloud and mega-cap platforms (Amazon, Microsoft, Meta, Alphabet, Oracle, IBM). The bank argues many AI infrastructure stocks have not detached from earnings expectations like typical bubbles, as investors continue demanding proof that AI capital spending translates into profits.
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