Goldman Sachs 2026 U.S. stock sector outlook: Industrial technology stocks are still in high demand, while automotive stocks need to be carefully selected.

Goldman Sachs Group, Inc. recently released a report on the outlook for the US automotive and industrial technology sectors in 2026, pointing out that the overall performance of these sectors in 2025 was impressive, with industrial technology and automotive stocks outperforming the S&P 500 index. Looking ahead to 2026, Goldman Sachs Group, Inc. predicts that industrial technology stocks will continue to outperform the market, driven by the cyclical recovery and long-term growth opportunities in data centers/AI, energy infrastructure, and automation such as Siasun Robot & Automation. As for the automotive sector, with industry sales at historical levels and lackluster future growth, investors are advised to adopt a selective strategy and focus on individual stocks with specific driving factors. The report highlights the strong performance of both sectors in 2025, with the median stock price of automotive original equipment manufacturers (OEMs) and primary suppliers covered by Goldman Sachs Group, Inc. rising by 23% and 63% respectively, while the S&P 500 index increased by only 16%. However, there were significant fluctuations in the industry throughout the year. Automotive stocks saw sharp declines in the spring due to tariff policies, which gradually recovered as tariff levels were lowered. Data center-related stocks, on the other hand, experienced volatility due to expectations of massive capital expenditure changes. Looking ahead to 2026, Goldman Sachs Group, Inc. expects interest rate cuts to provide valuation support, with the actual impact on stock performance depending on the macroeconomic backdrop. The report predicts further rate cuts in 2026 and limited risk of economic recession, with expected real GDP growth of 2-2.5% in 2026. Specifically, industrial technology stocks are forecasted to continue outperforming the market in 2026, driven by cyclical recovery and long-term growth opportunities in data centers/AI, energy infrastructure, Siasun Robot & Automation, and automation. On the other hand, a selective strategy is recommended for automotive stocks as global production levels are expected to plateau, with slow sales growth in the near future. Goldman Sachs Group, Inc. also analyzes key themes and trends in the data center and physical AI sectors, emphasizing the continued strong performance in 2025 and the growing commercialization of autonomous driving technology. Companies such as Tesla, Inc. are expected to benefit from cost advantages in the autonomous vehicle market, but software compatibility and driving range will be crucial for profitability. Additionally, investments in physical AI, such as Siasun Robot & Automation, are seen as offering vast market potential but may take several years to achieve scalable deployment. In conclusion, the report provides insights into the performance and trends in the automotive and industrial technology sectors, highlighting potential growth opportunities and cautioning investors to adopt selective strategies in both sectors for optimal returns.