Reported 1 day ago
Goldman Sachs has reported that increasing investments in artificial intelligence (AI) among S&P 500 companies are causing a slowdown in stock buybacks, which typically help increase share value. Notably, the 'Magnificent 7' tech giants, comprising Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, have invested heavily in AI, resulting in a 0% year-over-year buyback growth in Q2 2025 despite an overall buyback total of nearly $550 billion in the first half of the year. While Goldman Sachs predicts a return to growth in buybacks by 12% in 2026, this will depend on companies reducing their AI expenditures.
Source: YAHOO