Goldman Sachs' asset management arm has taken an underweight position on the largest artificial intelligence companies as debt issuance from the sector accelerates, according to Lindsay Rosner, a portfolio manager at the firm.
The move comes amid a surge in borrowing by hyperscalers. Companies like Nvidia, Microsoft, Google and Amazon have issued billions in debt to fund data center buildouts and AI infrastructure over the past 18 months, pushing corporate issuance to multiyear highs. Rosner's underweight call indicates concern about valuation or credit risk in the cohort even as the companies remain core holdings across institutional portfolios.
Hyperscalers have dominated capital markets activity this year. Microsoft alone raised $12 billion in a June offering, while other mega-cap tech firms have accessed debt markets at similar scale. The combined AI capex budget across the sector is forecast to exceed $300 billion in 2026, driving continued demand for funding. Banks have competed aggressively to underwrite these deals, and spreads have tightened as demand from real money investors has remained strong.
Goldman's positioning comes as credit investors assess whether current valuations and debt levels match the actual cash generation of the borrowers. Some allocators have expressed caution about the pace of debt accumulation relative to near-term revenue visibility from AI monetization. The firm's underweight posture does not mean an exit; rather, it indicates a reduced allocation relative to market weight within AI-focused investment strategies.
The broader asset management industry remains divided on the sector. BlackRock and Vanguard have maintained overweight or neutral stances, citing long-term structural tailwinds from AI adoption. Smaller fixed income managers have been more selective, favoring specific names over the entire cohort. Goldman's call adds a counterweight to the consensus and may influence how other institutional investors calibrate their exposure heading into the final quarter of the year.
Debt supply continuing to outpace new information on AI revenue conversion means allocation decisions will likely shift quarter by quarter. Goldman's move amounts to real-time reassessment rather than a long-term thesis shift. If debt issuance from the cohort accelerates further without corresponding revenue announcements, other major allocators may follow suit with their own underweight positions.
