Catenaa, Saturday, November 22, 2025- Goldman Sachs analysts cautioned investors that much of the potential upside from artificial intelligence may already be reflected in stock prices, warning that the AI-driven market surge could face limits if economic growth slows.
The note highlights risks in assuming broad profit gains across the AI supply chain.
While individual companies may post strong earnings, applying that optimism across the sector could overstate aggregate revenue and profit potential, the analysts said.
Early productivity gains may also diminish as competition and new investment reduce margins over time.
Goldman estimates AI could generate roughly $8 trillion in additional revenue for U.S. companies, with a possible range between $5 trillion and $19 trillion, though no specific timeline was provided.
Since ChatGPT’s launch, the value of AI-related firms has surged by more than $19 trillion, suggesting markets may have already priced in much of AI’s potential.
The analysts noted that high valuations could persist if economic conditions remain favorable, but investors may face setbacks if optimism fades or growth slows.
They stopped short of declaring a bubble, emphasizing that markets often price in anticipated gains ahead of time, and valuations could continue rising while the AI investment boom remains on track.
Goldman’s warning comes amid broader debate over whether AI-driven stock rallies are sustainable or echo past tech bubbles, with JPMorgan recently noting parallels to the dot-com boom of the late 1990s. Investors continue to weigh whether massive AI investments will translate into lasting returns.
