Goldman Sachs Predicts $305 Billion AI Windfall While Adoption Remains Slow

Wall Street’s tech giants are pouring billions into artificial intelligence infrastructure, driving a massive semiconductor revenue boom, but beyond Silicon Valley's elite, most companies are still fumbling through the early stages of adoption, according to Goldman Sachs.

In a note shared Monday, Goldman Sachs analysts Sarah Dong and Joseph Briggs said that AI-related investments in chips and hardware are set to add $305 billion in revenue by the end of 2025. That includes a $200-billion revenue growth for semiconductor firms, plus a $105-billion boost for other hardware enablers.

Despite the flood of investments, AI isn't moving the needle in GDP figures. Goldman said that's because the Bureau of Economic Analysis classifies semiconductors and cloud services as intermediate inputs, which don't directly show up in growth ...