Goldman Sachs CEO David Solomon has voiced caution regarding the current high valuations of tech stocks, drawing parallels to the dotcom bubble era. Speaking at Italian Tech Week, Solomon acknowledged the significant capital formation spurred by emerging technologies like AI but admitted uncertainty about whether an AI bubble exists.
Solomon highlighted the market's tendency to overshoot during periods of rapid technological advancement. Despite Goldman Sachs' heavy investments in technology, with $6 billion allocated this year and a desire for $8 billion, Solomon remains wary of potential market corrections. He noted that excessive exuberance often accompanies new technologies, potentially leading to irrational market behaviour.
While remaining optimistic about deal making and the potential for technology to drive growth and productivity, Solomon's comments suggest a need for caution amid the current tech stock surge.
