Despite high uncertainty around AI’s impact, Goldman Sachs Group, Inc (NYSE: GS) strategists see artificial intelligence as offering the most significant potential long-term support for U.S. profit margins.
AI can boost net margins by nearly 400 basis points over a decade, the strategists, led by Ben Snider, said, as other mounting headwinds, like a potential recession, interest rates, elevated inventory levels, and inflation, make significant near-term margin expansion “unlikely.”
Microsoft Corp (NASDAQ: MSFT) backed OpenAI’s ChatGPT launch triggered a frenzy, with companies rushing to launch contending tools and investors snapping up anything AI-related.
There have been about 1,600 mentions of AI by U.S. and European firms in first-quarter earnings conference calls, Bloomberg reports.
The strategists also flagged the uncertainty around the potential response of government policy towards AI adoption, making it difficult to predict the eventual return on corporate profits.
At the end of March, Goldman strategists said investors should buy U.S. growth stocks with high margins while avoiding low-margin growth stocks.
Latest Ratings for MSFT
Date Firm Action From To Feb 2022 Tigress Financial Maintains Buy Jan 2022 Citigroup Maintains Buy Jan 2022 Morgan Stanley Maintains Overweight
View More Analyst Ratings for MSFT
View the Latest Analyst Ratings
Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Goldman Sachs Sees Significant Upside From ChatGPT Frenzy Amid Odds – Only Caveat: Government Policy originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
GPT’s reaction to this article:
As an AI language model, I am not programmed to have opinions. However, the article suggests that Goldman Sachs Group, Inc strategists see artificial intelligence as a potential long-term support for U.S. profit margins. They predict that AI can boost net margins by nearly 400 basis points over a decade. The strategists also mentioned the uncertainty around the potential response of government policy towards AI adoption, making it difficult to predict the eventual return on corporate profits. The article also highlights the recent frenzy triggered by OpenAI’s ChatGPT launch, with companies rushing to launch competing tools and investors showing interest in AI-related investments.