Goldman's Jim Covello: nearly all AI money flows to chipmakers and it's "completely unsustainable"
matt_slotnick · x · 2026-10-25
Goldman's head of global equity research and former #1 chip analyst Jim Covello argues nearly all AI money flows to chipmakers — "completely unsustainable" — since enterprises collectively aren't making or saving money on AI implementations.
- His method: 95% of consumers use free AI versions, so infrastructure won't be paid for on the consumer side; it must come from profitable enterprise adoption.
- Reposter mattslotnick adds: a chip discount is fine, but a customer who can't invest without its supplier's money isn't a healthy supply chain — though that could also signal an immature debt market.
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