The article highlights the importance of AI in driving future returns and outlines four phases of investor focus: Nvidia, AI infrastructure, AI-enabled revenues, and AI productivity gains. As the market moves into the third phase, companies that generate revenue from AI products are expected to benefit. The article also notes the significant infrastructure and power demands of AI development, with companies like Microsoft signing long-term energy deals. The potential for AI to transform industries, similar to past technological revolutions, is seen as a key driver of future productivity and efficiency gains in corporate America.
Key takeaways:
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- Investor interest in Nvidia Corp. may be cooling, as trading volume has decreased despite the stock's significant gains this year.
- AI infrastructure, such as data centers and cloud services, is expected to see increased investment, with companies like Microsoft and Palantir Technologies being key players.
- Goldman Sachs predicts a shift in investor focus towards AI-enabled revenue and productivity gains in 2025, highlighting companies like Datadog, MongoDB, and Snowflake.
- AI is anticipated to drive productivity and efficiency improvements in corporate America, alongside other trends like digitization and automation.