Peter Oppenheimer, chief global equity strategist at Goldman Sachs, highlights the potential for new tech superstars as competition in the artificial intelligence (AI) sector intensifies.
In a recent note, Oppenheimer emphasized that the current surge in US tech stocks is largely driven by hopes surrounding AI, despite a narrow group of companies, termed 'hyperscalers,' dominating the market.
AI patents have skyrocketed, surpassing 60,000 in 2022, a significant increase from approximately 8,000 four years prior. This surge indicates a growing interest and investment in AI technologies.
Oppenheimer noted that while established tech firms may remain dominant, rapid innovation in AI and machine learning could lead to the emergence of new market leaders. He referenced historical trends where initial innovators did not always capture the most market value, citing examples from the telecom and dot-com eras.
Additionally, a report by Bain & Company projects that the AI-related market will expand significantly, growing by 40-55% annually, potentially reaching revenues between $780 billion and $990 billion.
Oppenheimer cautioned that a market dominated by a few companies risks vulnerability to disruption or antitrust regulations, as evidenced by the Fortune 500's narrow composition over decades.
This evolving landscape underscores the importance of AI in reshaping various sectors and its potential to drive substantial economic growth.