Report: Goldman Sachs Strategist Says AI Disruption Fears Will Linger for Years in Software Stocks

Goldman Sachs strategist Ben Snider told investors on Monday that uncertainty tied to artificial intelligence (AI)-driven disruption will suppress growth stock valuations for quarters, possibly years, and that broad exposure to the sector is no longer a viable strategy.

Key Takeaways:

The broader Magnificent Seven, however, is struggling, the Yahoo Finance report explains. JPMorgan strategist Mislav Matejka, quoted in Sozzi’s editorial, says the group is no longer performing its historical safe-haven role relative to the S&P 500. Only Amazon and Alphabet are marginally positive year-to-date. Tesla is down roughly 23%.

Capital is rotating toward sectors with physical assets, including data centers and infrastructure, where exposure to pure software disruption is lower, and AI infrastructure spending remains a direct tailwind.

Opposition to AI data centers is also hardening. 75% of Americans oppose having one built in their community, with 72% of opponents citing higher electricity costs and 64% pointing to water consumption. That local resistance is producing real project delays at a time when hyperscalers are still pushing capital expenditure projections higher for 2026.

The tension the Quinnipiac data captures is real: personal AI tool usage is climbing, with 51% of respondents reporting they have used AI for research, up from 37% in 2025. But adoption is running well ahead of trust. That gap, combined with Goldman’s call for prolonged valuation pressure on growth stocks, suggests the AI cycle is entering a phase where skepticism, not enthusiasm, drives the narrative.