ME AI News: Goldman Sachs market strategy team believes that the U.S. stock market’s rise still depends on AI infrastructure. Although the S&P 500 continues to hit new highs, the forces driving the index are uneven, with AI-related sectors remaining the most important engine. Goldman Sachs’ Tony Pasquariello said in a client note that if the S&P 500 closes above 7,530 points by the end of the year, it will achieve double-digit gains for four consecutive years. This is extremely rare in the index’s history, with the last similar performance occurring during the tech bull market from 1995 to 1999. However, the structure of this rally is highly concentrated. Goldman Sachs data shows that the strongest-performing sectors this year are mainly from AI infrastructure. Baskets related to storage chips, data centers, AI semiconductors, etc., have significantly outpaced the broader market. This indicates that the market is not experiencing a broad-based rally but is being driven by a batch of stocks most directly linked to AI capital expenditure. This structure has two sides. On the positive side, as long as AI orders, earnings, and capital expenditure expectations continue to materialize, the broader market still has upward support. AI infrastructure not only drives tech stocks but also spills over into sectors such as power equipment, industrials, materials, and data center real estate. On the negative side, the more the index relies on a few themes, the more sensitive the market becomes to changes in AI expectations. Goldman Sachs believes that AI remains the core driving force behind the U.S. stock market’s rise, but it is also a source of potential volatility. If investors continue to believe that AI capital expenditure will translate into earnings, the concentrated rally can continue; if the market begins to question the returns, the most crowded AI infrastructure stocks may come under pressure first, dragging down the broader market’s risk appetite. (Source: BlockBeats)

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Goldman Sachs: The rally in US stocks is still supported by AI infrastructure, but it is also a potential source of volatility.

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