BREAKING: Goldman Says AI Stocks Attractive as Cloud Capex Set to Hit $1.2 Trillion
Goldman Sachs’ Timothy Moe said AI related stocks remain attractive despite higher government bond yields, with the firm in the “longer for longer” camp on interest rates.
Ultra scale cloud providers are expected to spend about $800 billion on capex this year, rising to roughly $1.2 trillion by 2027, supporting Asian AI hardware demand.
Asian equities trade at around 10x PE, near the low end of their historical range, while earnings growth could provide support in a high rate environment.
Moe expects volatility to persist through the US midterms, with energy prices and geopolitical risks weighing on markets, but sees scope for a year end rally if earnings and valuations recover.
Goldman Sachs’ Timothy Moe said AI related stocks remain attractive despite higher government bond yields, with the firm in the “longer for longer” camp on interest rates.
Ultra scale cloud providers are expected to spend about $800 billion on capex this year, rising to roughly $1.2 trillion by 2027, supporting Asian AI hardware demand.
Asian equities trade at around 10x PE, near the low end of their historical range, while earnings growth could provide support in a high rate environment.
Moe expects volatility to persist through the US midterms, with energy prices and geopolitical risks weighing on markets, but sees scope for a year end rally if earnings and valuations recover.
