Goldman Sachs Group, Inc. strategists are predicting many potentials of artificial intelligence (AI) on the long-term success of the U.S. economy. A report from the strategists states that AI technology could propel a 400 basis point rise in net margins within the next 10 years, despite adverse circumstances such as a possible recession, high interest rates, and inflation. However, the strategists did urge caution when it comes to AI and government policy as it is still hard to determine whether or not profits will be positively impacted.
At the end of March, the Goldman strategists suggested that investors should opt for tech stocks which are known to enjoy higher margins, as compared to lower-margin ones. Among those mentioned was Microsoft (NASDAQ:MSFT).
Microsoft is an American multinational technology company with its headquarters based in Redmond, Washington. While its primary business is in the development of computer software, they have since delved into other sectors such as electronics, video gaming, and digital streaming. Microsoft is also the second-largest software company in the world. It is also the world’s most valuable company by market capitalization with a current market value of over $1.32 trillion.
Ben Snider is the leader of the Goldman Sachs Group, Inc. strategists. Mr. Snider is a Managing Director and head of Equity Index Product, Strategy and Quantitative Analytics for North America at Goldman Sachs. Before joining Goldman Sachs, Snider worked at Barclays in various equity index related positions and was also at Lehman Brothers. He also hold an MBA in Quantitative Finance & Investment Management from Pace University.
