Goldman Sachs emphasizes importance of software sector amid Gen-AI excitement, despite some challenges

From Investing.com: 2024-06-18 09:48:27

Goldman Sachs advises not to overlook the software sector as it experiences uncertainty amid Gen-AI excitement. While Oracle and Adobe reported healthy numbers, Snowflake forecasted weak revenue due to cautious spending. Despite hyperscaler growth, the software industry faces challenges from cyclical or structural issues impacting demand. Goldman Sachs estimates annual spending of $60 to $80 billion on Gen-AI while noting how AI is reshaping software’s value proposition. The success of tech cycles relies on killer applications, with the potential for Gen-AI applications to drive future growth. Companies embracing Gen-AI architectures are positioned for success, despite current market concerns.



Read more at Investing.com: Don’t count software out of Gen-AI