Goldman Sachs has pushed back against mounting concerns that global stock markets are entering bubble territory, saying valuations — even among artificial intelligence (AI)-linked companies — remain within reasonable bounds.
Economist Dominic Wilson said there is “still plenty of room for the AI investment boom to run,” arguing that current conditions resemble the early stages of the late-1990s tech rally rather than the speculative frenzy that preceded the dot-com crash.
“There may still be plenty of room for the AI investment boom to run,” Wilson said. “Market conditions have more in common with the tech boom in 1997–1998 than with the lead-up to the 1999–2000 bubble burst.”
The comments come after a global sell-off in technology stocks last week, sparked by Goldman Sachs chief executive David Solomon’s warning that a market correction could occur within the next one to two years.
Wilson noted that the 1990s tech bubble was driven by a “classic macro imbalance,” with soaring asset prices, heavy investment spending, rising leverage, and weakening profitability. When valuations collapsed, those same pressures reversed, triggering a recession.
“The macro and market imbalances that we saw then—record investment, declining profitability, deteriorating corporate balance sheets, and widening credit spreads—are not yet visible today,” he said. “But there is a growing risk that these kinds of signals become more apparent as the AI investment boom extends.”
