Goldman Embraces ‘Picks and Shovels’ of AI With More Capex Ahead

Goldman Sachs Asset Management urges investors to prioritize semiconductor firms and AI infrastructure providers, citing surging demand despite geopolitical instability from the Iran conflict. Brook Dane, a Goldman Sachs strategist, frames these sectors as the “picks and shovels” of AI, essential for long-term growth amid accelerating tech spending. The call highlights capital expenditure (capex) increases as AI adoption expands, positioning hardware and chipmakers as critical investment targets. Geopolitical risks, including the Iran war, fail to dampen the outlook, with Goldman emphasizing AI’s resilience as a transformative economic driver. The recommendation aligns with broader market trends favoring foundational AI technologies over speculative applications.