Goldman Sachs identifies key stocks poised for growth in new AI investment wave

Goldman Sachs reports a resurgence in AI investment, shifting focus from Nvidia to "platform" stocks like Microsoft and Datadog. Analysts believe these stocks will benefit from the next wave of AI funding, emphasizing their role in developing AI applications. Despite recent declines in some platform stocks, they are seen as undervalued and well-positioned for recovery. Analysts note that while AI infrastructure stocks may continue to rise, their returns will depend more on earnings than on current valuations. The report highlights a distinction between different phases of AI investment. Phase 3 stocks, which can monetize AI, are expected to drive confidence in Phase 4 stocks, which may take longer to realize significant earnings from AI adoption.