{"id":36372,"date":"2025-10-03T10:28:22","date_gmt":"2025-10-03T10:28:22","guid":{"rendered":"https:\/\/financialrush.com\/?p=36372"},"modified":"2025-10-03T10:28:22","modified_gmt":"2025-10-03T10:28:22","slug":"goldmans-solomon-warns-its-not-different-this-time-as-tech-stocks-hit-new-highs","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=36372","title":{"rendered":"Goldman\u2019s Solomon warns \u2018it\u2019s not different this time\u2019 as tech stocks hit new highs"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=8d80f601-4725-489a-8d6e-39099a01f9cb\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Goldman Sachs chief David Solomon has warned that a lot of capital being invested in artificial intelligence will \u201cturn out not to deliver returns\u201d but said it was still unclear whether the tech market was in a bubble. <\/p>\n<p>The current <a href=\"https:\/\/www.ft.com\/artificial-intelligence\" data-trackable=\"link\">AI<\/a> investment boom has propelled the market value of Nvidia to a new peak of $4.6tn, as Silicon Valley giants pour hundreds of billions of dollars of investment into data centres, helping push US stocks to fresh record highs this week. <\/p>\n<p>That will ultimately play out like other tech investment cycles, Solomon warned on Friday, even as he remained optimistic about AI\u2019s potential. <\/p>\n<p>Speaking at a conference in Italy on Friday, Solomon said that when the current cycle ends, \u201cthere will be a lot of capital that was deployed that didn\u2019t deliver returns\u201d. <\/p>\n<p>\u201cIt\u2019s not different this time. We just don\u2019t know how that will play out,\u201d he said. <\/p>\n<p>Solomon told an audience at the Italian Tech Week conference in Turin that AI\u2019s ability to boost productivity was \u201cvery exciting\u201d, predicting that the \u201cbusiness of work will be transformed by AI globally\u201d. <\/p>\n<p>But the chief executive of the most prestigious US investment bank admitted he was \u201cnot smart enough to know\u201d if investors\u2019 excitement over AI had turned into a bubble. <\/p>\n<p>\u201cIf you were having this conversation in 1998 you would have been asking the same question but the [market] would run for another three years,\u201d he said. <\/p>\n<p>\u201cWe are at the beginning of the movie not the end of the movie,\u201d he added. \u201cI wouldn\u2019t be surprised if in the next 12-24 months we see a drawdown in equity markets but that shouldn\u2019t be surprising given the run we\u2019ve had.\u201d <\/p>\n<p>Big Tech groups are investing ahead of a projected leap in demand from businesses for AI tools, even though many companies are yet to see the promised returns on the technology. <\/p>\n<p>Analysts at Citi this week raised forecasts for AI-related capital expenditures by Big Tech\u2019s \u201chyperscalers\u201d to $490bn next year, rising to $684bn by 2029. <\/p>\n<p>Solomon said that companies were slowing hiring as they assessed how useful the technology could be, contributing to a US jobs market that was a \u201clittle bit soft\u201d. <\/p>\n<p>But he said that the US economy as a whole was \u201cin pretty good shape\u201d, as fiscal stimulus and AI data centre investment provided a \u201cpretty good tailwind\u201d despite trade policy uncertainty. <\/p>\n<p>Beyond tech, the Wall Street boss also predicted that there would be an \u201cacceleration\u201d in dealmaking next year as US companies embraced the Trump administration\u2019s light-touch approach to regulation. <\/p>\n<p> Solomon said there was \u201creal momentum in the dealmaking environment. I would say it\u2019s accelerated very significantly,\u201d he said. <\/p>\n<p>\u201cI think you are going to see an acceleration of that in to 2026 for sure. CEOs are testing the boundaries of their capabilities\u2009.\u2009.\u2009.\u2009I think the regulatory environment is going to permit that.\u201d <\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/8d80f601-4725-489a-8d6e-39099a01f9cb\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":7,"featured_media":36373,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-36372","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tech","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/36372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36372"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/36372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/36373"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}