Goldman Analysts Say AI Stock Winners Outperform in Credit Too

Strategists at Goldman Sachs Group said that companies that specialize in the development and extension of technologies based on artificial intelligence, in terms of the value of shares and the dynamics of their growth, outperformed competitors working in the field of lending, although in this case there is no catastrophic gap between the indicators of firms in two different industries.

Goldman Analysts Say AI Stock Winners Outperform in Credit Too

Analysts found that the portfolio of issuers’ bonds that can take a profit as a result of the development and expansion of the use of AI, relative to the indicator recorded in February, increased by almost 1.5% compared to non-financial investment-grade debt in dollars, taking into account hedging rates. At the same time, strategists say that the dynamics of the growth in the value of bonds are influenced by the constraint factor, which is the natural pattern of a return to nominal cost after a certain period of time.

Representatives of Goldman, including Lotfi Karui, also note that there is a limitation of the risks of credit rating downgrade for those issuers who benefit from the activities of companies specializing in artificial intelligence. According to them, this circumstance is explained by the fact that many of the AI firms have phenomenally strong balance sheet positions.

Currently, artificial intelligence is something like the core of world development, to which the attention of the entire human civilization is riveted. This attention is manifested both in the form of curiosity and in the format of purposeful active economic efforts to develop an advanced technological sector. AI is obviously a promising technology that has the potential for a profound transformation of the space of human existence.

Artificial intelligence has become the most discussed topic internationally since the debut of the chatbot ChatGPT at the end of last year. The impressive capabilities of the digital mind, based on large databases and capable of analyzing information and solving certain tasks, have formed in the public consciousness the perception of advanced technology as a tool for changing the familiar world.

Interest in AI provoked an increase in the value of shares of companies operating in the relevant industry. For example, this week, for a short period, the market capitalization of Nvidia has reached $1 trillion.

As we have reported earlier, Experts Say ChatGPT to Fuel $1.3 Trillion AI Market by 2032.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.