Goldman Sachs: The impact of AI-related capital expenditure has only just begun, and supply and demand may not balance until the first half of 2028.
1 hours ago
Goldman Sachs believes discussions around AI capital expenditure (capex) are far from over. As large tech firms continue to compete for computing power, land, electricity, and data center resources, the supply-demand imbalance in AI infrastructure is likely to persist through the first half of 2028, meaning investors will continue to see higher capex guidance in the coming years. Eric Sheridan, head of TMT research at Goldman Sachs, noted there remains a significant gap between current AI computing power demand and available supply, with storage prices, chip costs, and data center construction expenses all rising. Pressure points across the AI industrial chain have expanded beyond a mere GPU shortage to include memory, land, electricity, data center enclosures, and delivery lead times.
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