Goldman Sachs' Sung Cho Discusses AI Trade Trajectory, Dismisses Funding Fears

This analysis is based on a CNBC “Closing Bell” discussion [1] featuring Sung Cho, co-head of public tech investing at Goldman Sachs Asset Management, who addressed the trajectory of the AI trade and the market outlook, arguing that AI funding fears are overstated. Separately, market data [0] indicates that NVIDIA (NVDA) recently gained amid news of its collaboration with SK hynix to develop solid-state drives (SSDs) for AI inference, a development relevant to the broader AI infrastructure sector discussed in Cho’s commentary. The combination of institutional reassurance on AI funding and tangible AI infrastructure innovation highlights continued market interest in AI-related opportunities.

1. Institutional Confidence in AI Funding
   : Cho’s dismissal of overstated AI funding fears reflects a positive long-term view from major asset managers, which may influence investor sentiment toward AI sectors.
2. AI Infrastructure as a Growth Driver
   : NVIDIA’s SSD development for AI inference demonstrates ongoing innovation in AI support technologies, a segment that remains a focal point for market gains amid broader AI market discussions.

• Opportunities
  : The alignment of institutional optimism (Cho’s comments) with tangible AI infrastructure advancements (NVIDIA-SK hynix collaboration) suggests potential growth in AI-related tech segments.
• Risks
  : Market volatility could arise if AI sector expectations outpace actual technological or funding progress, as well as competitive pressures in the AI infrastructure space.

Sung Cho’s commentary provides institutional perspective on the robustness of AI funding, while NVIDIA’s recent developments highlight ongoing innovation in AI infrastructure. These updates collectively contribute to the evolving narrative of the AI trade and its market implications, without indicating prescriptive investment actions.