GOLDMAN SACHS BULLISH ON AI STOCKS DESPITE BOND YIELDS

Moe's outlook places him in the "stronger-for-longer camp" regarding AI's market trajectory, suggesting sustained demand and growth potential for AI-focused companies. The Goldman strategist's position reflects confidence that AI fundamentals remain solid despite macroeconomic headwinds. Rising Treasury yields typically pressure growth stocks, including those in the technology sector, by increasing the cost of capital and reducing the present value of future earnings. However, Moe's thesis implies that AI's competitive advantages and structural tailwinds outweigh these yield-related concerns. The sector has demonstrated resilience and continued investment momentum from both enterprises and consumers. This contrasts with more cautious views questioning whether AI valuations can sustain elevated levels amid changing interest rate environments. Moe's perspective suggests the productivity gains and revenue opportunities from AI deployment justify current positioning for investors with conviction in the technology's transformative impact.