Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Goldman Sachs is pointing investors toward a different way to play the artificial-intelligence boom: companies that could use AI to cut labor costs and boost productivity, rather than the chipmakers and infrastructure providers that have dominated the trade so far.

Warning! GuruFocus has detected 2 Warning Sign with CSGP. Is CSGP fairly valued? Test your thesis with our free DCF calculator.

After second-quarter earnings, Goldman refreshed its AI Productivity Beneficiaries basket, screening Russell 1000 companies for two characteristics: high labor costs relative to sales and high exposure of their wage bills to AI automation.

CoStar Group (NASDAQ:CSGP) topped the list. Goldman estimates 37% of its wage bill is exposed to AI automation, while labor costs represent 31% of sales, giving it an average sector ranking of 97%.

Dollar Tree (NASDAQ:DLTR) and eBay (NASDAQ:EBAY) followed with average rankings of 89%. Insurance brokers Arthur J. Gallagher (NYSE:AJG) and Brown & Brown (NYSE:BRO) also ranked near the top, highlighting how AI's next financial impact could extend well beyond technology companies.

The broader numbers, however, show why Goldman still sees this as an emerging trade.

About 65% of S&P 500 companies mentioned AI during earnings season and 46% discussed AI in connection with productivity or efficiency. Yet only 11% quantified the benefits for a specific use case, while just 2% quantified an impact on earnings.

That gap is critical. Investors have so far been able to see billions of dollars flowing toward AI chips, data centers and cloud infrastructure. Evidence that those investments are materially lowering costs across corporate America remains much thinner.

Other notable names on Goldman's screen include Axon Enterprise (NASDAQ:AXON), The Trade Desk (NASDAQ:TTD), Airbnb (NASDAQ:ABNB), Boeing (NYSE:BA), Expedia (NASDAQ:EXPE), Target (NYSE:TGT) and Charles Schwab (NYSE:SCHW).

Investors Takeaway

Goldman's basket should be viewed as a productivity opportunity screen, not proof that earnings are already accelerating because of AI.

For investors, the next confirmation needs to show up in operating metrics. Watch for declining labor expense as a percentage of revenue, widening operating margins and explicit dollar savings tied to AI deployments.

The most powerful catalyst would be a shift in earnings calls from companies simply discussing AI to quantifying cost savings and raising margin guidance because of it.

If that begins happening across labor-intensive companies, the market's AI trade could broaden substantially beyond Nvidia and other infrastructure winners. If measurable earnings benefits remain elusive, however, these stocks may struggle to earn a meaningful AI productivity premium.

View Comments