"The AI-inspired demand for Nvidia's advanced chips is accelerating so rapidly that the consensus sales forecast published earlier this year is now totally obsolete," Goldman Sachs' Ryan Hammond said.then more and more companies could see profit boosts that ultimately send their stock prices higher.
Second, workers who are displaced by AI and automation will eventually become reemployed, boosting total output in new jobs that emerge following AI adoption. "Every company could theoretically utilize the generative algorithms to improve productivity and profitability. The relatively stable share of revenues allocated to selling, general, and administrative expenses in recent decades, in contrast with large declines in other input costs, highlights the potential gain to profitability from AI," he said.