What To Make Of Goldman Sach's AI List

Goldman Sachs analysts yesterday published a list of potential long-term AI winners, giving investors a sneak peek into companies that are well-positioned to benefit from the ongoing AI transformation. According to the analyst team led by Goldman’s chief U.S. equity strategist David J. Kostin, many of these companies are expected to see a notable improvement in labor productivity due to AI integration. The report highlights three sectors that would benefit the most; software services, communications, and professional services.

Analyzing The List

The companies list published by Goldman Sachs consists of 50 companies.

Pinterest, Inc. (PINS) is expected to be one of the biggest beneficiaries of AI integration with the social media platform projected to see a 162% incremental growth in earnings thanks to AI investments. Pinterest’s AI investments have enabled the company to offer more personalized recommendations to users, which is likely to aid user growth and retention in the coming years. A more engaged user base will boost the monetization levels of the platform. On the other hand, AI integration will help the company keep operating costs low.

Coupang Inc. (CPNG), the South Korean e-commerce giant which is often dubbed as the Amazon of South Korea, is a potential winner of AI technology with the company expected to see a 49% increase in profits thanks to AI investments. Coupang’s stellar progress in utilizing AI to optimize its delivery network is one area where the company is winning big from AI investments. Automation of various tasks such as inventory management and customer servicing will play a crucial role in boosting Coupang’s profitability as well. In addition, as an e-commerce platform, the company seems well-positioned to use AI-powered data analysis to improve product recommendations to platform users, potentially driving sales higher.

Database platform giant MongoDB, Inc. (MDB) is projected to see a 193% increase in earnings resulting from AI, which does not come as a surprise given the strong preference among software developers to use MongoDB’s flexible scheme design to store unstructured data that is required to run AI models. MongoDB offers advanced functionalities that cater to the deployment of generative AI features, such as vector search, which makes its database platform solutions attractive compared to other solutions in the market. In addition, the company offers easily scalable solutions that cater to both small-scale and large-scale needs of developers, which sets it apart from the competition.

Dilantha DeSilva has properties in Coupang. Stocks.News has no properties in any of the companies mentioned.