Goldman's Minnis Sees 'Generational' AI Shift Fueling Markets

Summary

Christina Minnis of Goldman Sachs describes the AI investment wave as generational and well-received by capital markets, with AI-related credit issuance accelerating and M&A pipelines robust. She highlights that while concentration exists among hyperscalers, innovation is broadening into many new companies across power, energy, and distribution.

• AI investment is described as generational and well-received by capital formation globally.
• High yield issuance is 20% AI-related, up from 12% last year, showing acceleration.
• Leveraged finance forward calendar has declined, but AI-related structured IG pipeline is up significantly.
• M&A pipelines are robust, with take-privates up 37% year-over-year.
• Concentration in hyperscalers exists, but many new innovative companies are emerging in power, energy, and distribution.
• A large corporate divestiture loan priced near par at S+250, indicating strong demand.
• The bank actively manages risk but sees constructive broadening of AI-driven activity into more companies.