Goldman Sachs warns of overheated AI stocks: These 5 companies are on thin ice - analysis and forecast.

Goldman Sachs warns of overheated AI stocks: These 5 companies are on thin ice - analysis and forecast.

According to a report by de.investing.com, a warning from Goldman Sachs shows that some stocks benefiting from AI hype may be overheated. The stocks mentioned, including Autodesk, Arista Networks, and Advanced Micro Devices, could be at a crossroads, which could lead to increased volatility and an increased risk of a sharp price correction. Goldman Sachs used various metrics to identify overheated companies and identified these companies as at risk.

Autodesk, a design software company, is listed as particularly at risk by Goldman Sachs. Although shares are already up 12% this year, the US bank's price target suggests a correction of a whopping 33%. A similar picture can be seen with Arista Networks, whose shares have risen by over 28%, but still have little room for improvement. CrowdStrike, a cybersecurity specialist, is also rated as overvalued, with a price target around 32% below current prices. Other companies considered to be crowded include Vertiv and Advanced Micro Devices.

Goldman Sachs' warning and InvestingPro's assessments suggest that investors and buyers of these stocks should exercise caution. A possible price correction in these overheated stocks could lead to losses and increase volatility in the market.

As an economist, it is important to note that a potential correction in these overheated AI stocks could also impact the entire tech sector. Investors and investors should take the warnings from financial institutions such as Goldman Sachs seriously and adjust their investment strategies accordingly.