AI Stock Boom: Goldman Sachs Reveals Top Picks and Market Trends!

AI Stock Boom: Goldman Sachs Reveals Top Picks and Market Trends!

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**Key Market Insights**

A rise in Treasury yields, driven by slightly higher-than-expected consumer and producer price inflation data, has caused equity traders to take a step back. Meanwhile, concerns about the growth of Nvidia's stock have also impacted sentiment, despite the chipmaker's 77.6% increase since the beginning of the year. Goldman Sachs suggests that this consolidation phase could simply indicate investors shifting their focus to other potential winners in the AI growth narrative.

Goldman's equity strategists, led by Ryan Hammond, highlight three key phases:

1. **Infrastructure:** This phase includes companies beyond Nvidia that are involved in building the necessary infrastructure for AI, such as semiconductor firms, cloud providers, data center REITs, hardware and equipment companies, security software stocks, and utilities companies.

2. **Enabled Revenues:** Companies with business models that can integrate AI into their products to drive revenue growth. This phase encompasses many software and IT services companies.

3. **Productivity Gains:** Companies leveraging AI to enhance productivity, particularly in labor-intensive industries. Goldman's Long-Term AI basket includes companies like New York Times, Amazon.com, Walmart, Fidelity National Financial, Tenet Healthcare, and Guidewire Software.

Goldman anticipates more active trading in Phase 2 and Phase 3 stocks compared to Phase 4, as companies in these phases are crucial for others to effectively use AI to boost productivity.

In other market news, U.S. stock-index futures are lower, with benchmark Treasury yields largely unchanged. The dollar is stable, while oil prices have dipped and gold is trading around $2,160 an ounce.

**Market Updates and Buzz**

The Empire State manufacturing survey for March experienced a significant decline, while industrial production saw a slight increase in February. Michigan Consumer sentiment for March fell below expectations. It's a triple-witching Friday, with options tied to over $5 trillion in stocks set to expire.


Shres in Adobe and Ulta Beauty are down after solid results failed to meet expectations. Coinbase Global is also down as Bitcoin retreats from recent highs.

Japan's unions have secured wage hikes, the highest in 33 years, potentially paving the way for the Bank of Japan to exit negative interest rates at its upcoming meeting.

**Best of the Web**

Stories include professionals with nothing left to prove, India's small caps facing a crash, and the closure of a love scam center in the Philippines.

**The Chart**

Lindt warns of pricier Easter bunnies due to low cocoa production in west Africa, driving cocoa prices to a record high above $7,500 a ton.

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