What to Buy If Not AI

Goldman Sachs identifies opportunities in AI infrastructure bottlenecks like MLCCs and power, while advising a rotation into unloved sectors like healthcare bioprocessing and European defense.

Key Takeaways

• 1.The AI rally is considered sustainable with fundamental support, but diversification into bottlenecks like MLCCs and power infrastructure is recommended.
• 2.Multilayer Ceramic Capacitors (MLCCs) have emerged as the third-highest cost item in AI servers, with spot prices rising 20% YTD.
• 3.European Defense has undergone a 20% valuation reset, creating a tactical entry point for 'pure-play' defense tech.

Table of Contents

• AI picks and shovels.
• Where is narrative momentum pointing?
• A more sustained Momo pause.
• De-escalation = Dispersion?
• What to buy if not AI?

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