Wall Street Giants Project Trillions in AI Value, Dismissing Bubble Fears

Three prominent Wall Street analysts from Goldman Sachs, JPMorgan, and Wedbush have collectively asserted that the rapid expansion of Artificial Intelligence (AI) represents sustainable growth, not a speculative bubble. This consensus, detailed in notes reviewed by Fortune, indicates that the underlying technological advancements and economic potential of AI warrant current investment levels, a sentiment largely echoed by Wall Street traders.

Goldman Sachs analysts have largely dismissed concerns regarding the sustainability of AI investment. The firm's analysis highlights that current AI investment as a percentage of U.S. GDP remains below 1%, significantly lower than the 2-5% observed during previous major technology cycles. The investment bank estimates the potential capital revenue unlocked by AI productivity gains in the U.S. to be approximately $8 trillion, with plausible projections ranging from $5 trillion to $19 trillion.

JPMorgan's research reinforces this optimistic outlook, suggesting AI is already a substantial contributor to U.S. economic growth. The firm forecasts that generative AI alone could elevate global GDP by an impressive $7–10 trillion, potentially up to 10%, within the next one to three years. This growth is driven by significant capital expenditures from major technology companies, with investment in computing infrastructure seeing a 41% increase in the second quarter.

Wedbush Securities analyst Daniel Ives has also strongly supported the view that the AI revolution is in its nascent stages, far from forming a bubble. Ives, a notable technology bull, characterized the current AI landscape as a "1995 moment" for the tech sector, noting that only about 10% of enterprises have fully integrated AI into their operations. He anticipates a massive surge in AI spending over the next decade, fueling substantial growth for industry leaders.

Despite some nuances, including Goldman Sachs CEO David Solomon's caution about potential market "drawdowns" and investments that may not yield returns, the overall message from these financial institutions is one of confidence. Their collective assessment underscores a belief in AI's profound and lasting economic impact, positioning it as a transformative force rather than a fleeting speculative trend.