Stock buybacks are taking a backseat as companies like Nvidia and Microsoft prioritize AI investments. Goldman Sachs notes that AI spending is crowding out buybacks, with generative AI expected to deliver trillions in economic benefits annually. Big tech may reduce buybacks to focus on AI, limiting investor returns.

Tech giants are pivoting towards AI investments, potentially reducing stock buybacks. While buybacks may rise next year, continued AI spending could impede significant growth. Investors seem unfazed, as the S&P 500 has seen double-digit gains this year. Benzinga forecasts a rise in buybacks, but AI spending may alter this projection.

With AI spending on the rise, companies may allocate less to stock buybacks. Goldman Sachs anticipates a 12% increase in buybacks next year, but growth could falter if AI investments continue. The forecast suggests that stock buybacks are currently on hold.

Read more at Yahoo Finance: Move Over Stock Buybacks! AI Spending Is In Full Swing