Wall Street Loves AI: Goldman Expects A Shocking $7 Trillion Boost In Global GDP And Raises Targets For MSFT, CRM, ADBE

Goldman Sachs Research predicted widespread use of artificial intelligence (AI) will result in strong productivity gains and stronger long-term economic growth.

According to the Goldman Sachs Macro team, AI adoption could create about $7 trillion in global economic growth over a 10-year period, comparable to a 7% increase in annual global GDP.

After cloud computing, the next wave of innovation and monetization in corporate software will be driven by generative AI, according to the experts.

While generative AI is still in its early stages, it has already made quite an impression on consumers with its human-like answers and capacity to generate original content. During business earnings calls, Goldman Sachs noted management teams are more focused on AI's opportunities and an increase in AI-related comments anticipates an increase in capex in the coming year. 

Although the magnitude of AI's impact will ultimately be determined by its capabilities and adoption timeline, Goldman Sachs believes generative AI has an "enormous economic potential" if it delivers on its promise.

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Which Companies Are Best Positioned To Profit From AI?

Microsoft Corp MSFT, Alphabet Inc. GOOGLGOOGL, Nvidia Corporation NVDA, Amazon.com, Inc. AMZN, Salesforce Inc CRM, Meta Platforms Inc META, Intuit Inc. INTU and Adobe Inc ADBE are better positioned to gain from AI and can further enhance their competitiveness, according to Goldman Sachs.

In note released Sunday, the Goldman Sachs Equity team raised its price forecasts for a number of technology firms.

Microsoft's price target was raised from $315 to $325 as Goldman believed the recent wave of product releases, particularly Microsoft 365 Copilot, could translate into stronger revenue over time.

Adobe's price target was raised to $480 from $475 due to a slew of new features and products that might propel the company's creative, document and marketing solutions into the next phase of growth.

Goldman Sachs boosted its Salesforce price estimate to $325 from $320, citing Einstein GPT's potential to drive broader adoption throughout the Salesforce ecosystem.

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