AI Spending Surges Despite Elusive Profit Gains

Just as corporate spending on artificial intelligence (AI) is accelerating sharply, Goldman Sachs strategist Ben Snider says that most companies are yet to see a meaningful improvement in earnings. According to Snider, only 2% of S&P 500 (SP500) firms have quantified the impact of AI on their profits.

Goldman Sachs notes that while AI spending is surging, it has yet to produce significant profit gains for most companies. This trend is particularly evident in the State Street Technology Select Sector SPDR ETF (XLK), which tracks technology and IT services stocks.