How much does Goldman Sachs expect AI infrastructure spending to reach by 2027?

Goldman Sachs expects spending to exceed $1 trillion by 2027.

Which stocks did Goldman Sachs recommend in the report?

The report recommended NVIDIA (NVDA), Intel (INTC), and a third unnamed stock.

Why does Goldman Sachs expect AI spending to grow?

Due to rapid adoption of generative AI and competition among cloud providers.

Are there risks associated with these forecasts?

Yes, risks include high stock valuations and intense competition in the chip market.

Goldman Sachs: AI Infrastructure Spending Could Top $1 Trillion by 2027

Goldman Sachs forecasts AI infrastructure spending could surpass $1 trillion by 2027, driving demand for NVIDIA and Intel chips.

Goldman Sachs predicted today that global spending on artificial intelligence (AI) infrastructure could exceed $1 trillion by 2027, according to a report from Motley Fool. The bank recommended three AI stocks, including NVIDIA (NVDA) and Intel (INTC).

Forecast Details

Goldman Sachs expects spending on data centers, networking, and specialized AI hardware to grow at a compound annual rate of over 30% through 2027. The growth is driven by rapid adoption of generative AI across industries.

Recommended Stocks

NVIDIA (NVDA): Dominates the GPU market used for AI model training and is poised to benefit from rising chip demand.
Intel (INTC): Focuses on specialized AI chips via its "Gaudi" platform and may gain market share as customers diversify.
A third stock was not named in the report.

Analyst Rationale

Analysts believe AI infrastructure spending has become a strategic priority for major corporations, creating sustained demand for hardware and software. Competition among cloud providers is also fueling investments.

Context

The report follows strong AI stock performance in 2025, with NVIDIA rising over 200% in the past year. However, concerns over high valuations persist.

What to Make of It

Goldman Sachs' forecast reflects long-term optimism in the AI sector, but investors should consider competitive and valuation risks before making decisions.