Will A.I. Be a Bust? A Wall Street Skeptic Rings the Alarm.
Published On Sep 23, 2024, 11:10 AM
Jim Covello, the head of stock research at Goldman Sachs, warned investors that the current enthusiasm around AI may be misleading, drawing parallels with past economic bubbles like cryptocurrencies. Covello questions whether businesses will achieve adequate returns on the substantial investments projected to reach $1 trillion. His concerns stem from the frequent mistakes made by generative AI technologies, leading to a decline in a Goldman-managed basket of AI-related stocks such as Nvidia, Microsoft, and Amazon, which has dropped 7% since its peak.