Goldman Slashes AI Growth Forecast as Valuation Multiple Compression Looms
What’s happening
Goldman Sachs cut its AI stock growth forecast by 25%, signaling a shift in investor appetite for the sector. The South Korean Kospi index, heavily weighted to semiconductor and AI chip suppliers, is now the leading indicator for global AI trade sentiment.
Market impact
This is a direct threat to Nvidia, TSMC, and other AI beneficiaries that have priced in perpetual growth. A reduction in growth multiples combined with rising volatility could trigger a sharp correction in mega-cap tech stocks that have driven the S&P 500's gains.
Broader implications
The AI bubble narrative is gaining institutional credibility. If Goldman's call spreads, it could spark a broader rotation out of growth and into value or defensive assets ahead of earnings season.
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