Goldman Sachs Warns of AI Bubble: Market Will Reprice When First Major Cut in Spending Occurs

On June 23, Goldman Sachs strategists warned that the AI market has become like a stretched rubber band, and the market's ongoing disregard for negative signals will eventually reach a critical point. Once any major tech giant is the first to cut AI spending, the valuation logic of the entire AI sector will face a comprehensive restructuring. Privorotsky, a strategist in Goldman Sachs' Global Banking and Markets division, pointed out in a research report on Tuesday that the market has largely ignored all negative signals emerging from AI capital expenditure transactions over the past few weeks. He specifically highlighted an increasingly widening structural divergence: while hyperscale cloud providers continue to ramp up spending commitments, their stock prices have consistently underperformed the market; meanwhile, AI hardware stocks, represented by Nvidia and TSMC, have risen against the trend. This divergence itself is a signal of market pricing distortion.