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Artificial intelligence remains a focal point of the US stock market. However, the excitement is accompanied by caution regarding investment performance. With hundreds of billions of dollars continuing to be poured into AI, Wall Street investors are paying close attention to investment plans and potential returns from AI-related stocks.
According to Goldman Sachs, valuations of AI infrastructure stocks are cooling down significantly. The median forward P/E ratio for this group has fallen from 32 times in April to around 22 times. For technology stocks in the S&P 500, valuations have also decreased from around 26 times at the beginning of the year to 21 times. This caution is also reflected in earnings expectations.
According to analyst data provided by LSEG, earnings for S&P 500 companies are projected to increase by approximately 35% this year, but this pace could slow to around 15% in 2027. While still above the long-term average, investors are concerned about how long this earnings growth can be sustained.
Meanwhile, investment continues to grow strongly. The five largest technology companies are expected to spend more than $800 billion this year and around $1.1 trillion next year. However, the rate of spending growth is projected to slow from nearly 100% this year to 37% in 2027.
As the amount of capital invested increases, investors demand clearer assurances about the ability to convert these investments into revenue, cash flow, and profits. This challenge is further compounded by high interest rates, which increase the cost of capital and restrict investment activities by businesses.
Investors are currently closely monitoring AI spending plans and the sustainability of returns from AI infrastructure stocks. The upcoming third-quarter earnings season will provide a clearer picture of the actual profitability of the AI investment wave.
Source: https://vtv.vn/lan-song-dau-tu-ai-tu-cuoc-dua-cong-nghe-den-bai-toan-loi-nhuan-100261002101713292.htm
