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Goldman Sachs head of European fixed income and equities trading Rich Privorotsky said in an interview on the "The Markets" podcast that Goldman Sachs' prime brokerage book saw the largest tech stock selloff in history last week. He noted that the market expects AI capital expenditure to reach $1.1 trillion next year, but investors are demanding to see backlog orders converted into revenue; at the same time, a power shortfall of about 40 to 50 gigawatts next year casts doubt on compute delivery. He also said the macro environment is shifting from a savings glut to a spending glut, and believes spot market compute prices are still hitting new highs, with no sign of weakening demand. This claim currently comes from a single interview report, and there have been no subsequent factual developments.
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Oct 24
Wallstreetcn
Goldman Sachs trading head interprets institutions' significant AI position reduction: power gap and cost of capital in focus
Rich Privorotsky, Goldman Sachs' head of European fixed income and equity trading, revealed in an interview on the "The Markets" podcast that last week the Goldman Sachs prime brokerage business book saw the largest technology stock selloff in its history. He noted that the market expects AI capital expenditure to reach 1.1 trillion US dollars next year, but investors demand to see backlog orders converted into revenue, while a power gap of about 40 to 50 gigawatts next year casts doubt on computing power delivery. He said the macro environment is shifting from a savings glut to a spending glut, and believes spot market computing power prices are still hitting new highs, with demand showing no sign of weakening.