Speaking at a conference in Italy on Friday, Goldman Sachs CEO David Solomon predicted that the US economy will accelerate into 2026, driven by ongoing stimulus and increased tech spending, despite a softer labor market and geopolitical unrest.
The CEO stated that the “changed regulatory environment” also means CEOs are becoming more ambitious when it comes to M&A, and when the current economic cycle ends, “there will be a lot of capital that was deployed that didn’t deliver returns”.
Soloman mentioned that the ongoing AI investment surge has driven Nvidia’s market value to a new high of $4.6 trillion, as Silicon Valley giants invest hundreds of billions in data centres, contributing to US stocks reaching new record levels this week.
He also confirmed that Goldman will invest more in AI, “We’ll spend $6 billion on technology this year. I would have liked to spend eight, but I can’t afford it because I’ve got to deliver returns.”
“If you were having this conversation in 1998 you would have been asking the same question but the [market] would run for another three years. We are at the beginning of the movie not the end of the movie. I wouldn’t be surprised if in the next 12-24 months we see a drawdown in equity markets but that shouldn’t be surprising given the run we’ve had,” he concluded.
Moving forward, Soloman said, “I think we can continue to grow Goldman Sachs, I think we can continue to serve a wider slice of clients with these tools and these capabilities being integrated into the firm, changing our processes.”
By CEO NA Editorial Staff
