AI fears drive US stock investors to rethink long-term growth bets, says Goldman

Fears that artificial intelligence could disrupt long-term U.S. corporate growth have renewed investor focus on how much of ‌stock valuations depend on profits expected beyond the next decade, particularly in ‌sectors such as software, Goldman Sachs analysts said. Profits expected more than 10 years into the future - ​often called terminal value - now account for about 75% of the S&P 500's equity value, near a 25-year high, the Wall Street brokerage said. "Today’s share of value in the terminal value is elevated versus history and mirrors other periods where investor long-term ‌growth expectations were increasingly optimistic, ⁠including the dotcom boom," Goldman said in a note on Thursday.