The AI boom, which has already significantly benefited tech companies, is expected to continue driving market growth as it permeates all sectors of the economy. Meanwhile, the push for decarbonization, driven by climate change, is forcing economies to restructure and modernize, which typically leads to economic growth. Despite the different drivers, Oppenheimer believes this new super cycle could have a significant impact for some time to come.
Key takeaways:
- The global economy is entering a new "super cycle" driven by artificial intelligence (AI) and decarbonization, according to Goldman Sachs analyst Peter Oppenheimer.
- This new cycle marks a shift from the previous one that began in the 1980s, which was driven by factors such as low interest rates, the end of the Cold War, deregulation, and globalization.
- The AI boom, which has already significantly benefited tech companies, is expected to continue to drive growth and improve productivity across all sectors of the economy.
- Decarbonization, or the transition to a low-carbon economy, is the other key driver of the upcoming growth cycle, as economies are forced to modernize and restructure in response to climate change.