Goldman Sachs strategists have revealed that the stocks of artificial intelligence (AI) firms that outperform the market have also outperformed their credit peers, albeit not to the same extent. The researchers found that a selection of notes from issuers set to gain from AI had risen by almost 1.5% since February, compared to a measure of investment-grade non-financial dollar debt on a rates-hedged basis. While the bonds offer a degree of downside protection, this can be limited by their typical return to par value over time. The strategists said that these AI-related companies often have strong balance sheets. These findings come at a time when demand for generative AI is predicted to grow significantly over the next decade.
The article focuses on the findings of strategists at Goldman Sachs, a multinational investment bank based in the US. The firm has reported significant growth in revenue and profits in recent years, with first-quarter profits in 2021 reaching $6.8bn, up from $1.2bn in the same period in 2020. The bank has also been at the forefront of moves to help increase diversity on Wall Street.
The author also refers to ChatGPT, an AI language model developed by OpenAI. The technology has seen surging demand globally, with the capacity to disrupt numerous industries from customer service to banking. The technology has also fuelled a recent rally in AI-related stocks, with Nvidia briefly reaching a market cap of $1tn earlier this week.
