Goldman Sachs warns: AI frenzy driving Wall Street to record levels, market may be overly optimistic.

Goldman Sachs warned in a report released on Sunday that the market may be overly optimistic. The recent frenzy surrounding artificial intelligence has led to the creation of market values in the hundreds of billions of dollars, but analysts say that many potential gains may already be reflected in stock prices. "Investors tend to go to extremes during the innovation stage - they over-summarize and extrapolate trends," analysts wrote. "Individual companies may achieve incredible profit growth at certain stages, but this does not necessarily apply to the entire industry." Goldman Sachs pointed out that if investors believe that many participants in the artificial intelligence value chain can achieve high profit growth, it will lead to market-level revenue and profit expectations being overestimated. Another major risk emphasized by analysts is that the market may mistakenly believe that early returns can persist in the long term. While initial productivity gains may boost profits, over time, competitive pressures and new investments often offset these advantages.