Goldman Embraces ‘Picks and Shovels’ of AI With More Capex Ahead

April 8, 2026 - 22:08

In a climate of heightened geopolitical tension, Goldman Sachs Asset Management is advising investors to focus on the foundational technologies powering the artificial intelligence boom. Brook Dane, a senior member of the investment team, emphasized the critical need for exposure to semiconductor firms and other essential infrastructure, often termed the "picks and shovels" of AI.

This strategy comes as corporate capital expenditure in AI is projected to accelerate significantly. Despite uncertainties stemming from global conflicts, Dane argues that the demand for the underlying hardware enabling AI development and deployment is both robust and distinct from broader market risks. The firm anticipates continued heavy investment in data centers, networking equipment, and the advanced chips required to train complex AI models.

The perspective underscores a belief that while specific AI applications may evolve, the companies providing the essential tools for the sector are positioned for sustained growth. This approach seeks to capitalize on the widespread adoption of AI across industries by targeting the vital components that make this technological shift possible, regardless of which software or service ultimately leads the market.