AI links 75% of S&P 500 to decade-ahead profits
AI is shaking up the US stock market, with investors worried about how it might change long-term business growth.
According to Goldman Sachs, these concerns are driving big shifts in how stocks are valued: now, about 75% of the S&P 500's worth comes from profits expected more than a decade from now.
That's the highest level since the dot-com era.
Tech giants spend $600B on AI
New AI tools from companies like Anthropic have made traditional software firms nervous, causing a 17% drop in their stock index this year.
Meanwhile, tech giants like Alphabet, Microsoft, Meta, and Amazon are betting big on AI, spending an estimated $600 billion this year, which is putting pressure on their cash flow.
Even a small dip in expected growth could mean a major hit to overall market value, so expect AI's impact on stocks to keep making headlines.