Goldman Sachs says the AI boom echoes Dot-Com tensions as valuations outpace fundamentals
- Goldman Sachs sees no macro imbalances yet signalling the boom's end, but says the gap between favourable fundamentals and stretched valuations continues to widen, echoing dynamics from the 1990s tech bubble.
- The most credible upside case requires AI-related companies to capture an above-normal share of AI-driven productivity gains; outside AI-exposed areas, the macro backdrop may be more fragile than headline growth suggests, the bank writes.
- Goldman expects the investment boom to extend further, but flags rising equity volatility ahead and a higher-than-usual risk that rates end up meaningfully lower once the boom peaks.
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