Goldman Sachs CEO David Solomon Warns of Possible Stock Market Pullback After AI Frenzy
Oct 3, 2025
Goldman Sachs CEO David Solomon has warned that the recent surge in stock markets, driven in part by excitement over artificial intelligence (AI), could soon see a pullback. He said that current investment in AI may be overdone, and a market 'drawdown' could follow.
Speaking at Italian Tech Week in Turin, Solomon explained that while the bull market does not worry him, he expects a period where the market reassesses which companies are truly benefiting from AI technology. He suggested that investors should be cautious, as not every company will be a long-term winner.
Solomon also shared his views on the U.S. economy, mergers and acquisitions, and regulatory issues in Europe during the event.
What is a 'drawdown' in the stock market?
A drawdown is a decline in the value of stocks or the overall market after a period of gains.
Why is there concern about AI investment?
Some experts, like David Solomon, believe that too much money is going into AI-related stocks, which could lead to a correction if those investments do not meet expectations.
Should investors be worried about their stocks?
Solomon's comments suggest caution, especially for investors focusing heavily on AI-related companies, as the market may adjust if some do not perform as hoped.
What other topics did David Solomon discuss?
He spoke about the U.S. economy, mergers and acquisitions, and how financial regulations are developing in Europe.
Sources
Goldman Sachs CEO David Solomon on US Economy, AI Spending, M&A
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Goldman Sachs CEO David Solomon discusses the outlook for the US economy, the deals environment, the bank's spending on artificial intelligence and technology, and the regulatory climate in Europe. He talks with Bloomberg's Tom Mackenzie at Italian Tech Week in Turin.
Goldman Sachs CEO David Solomon warns stock market ‘drawdown' will follow AI boo...
New York Post
New York Post
Goldman Sachs CEO David Solomon on Friday warned that an AI investment frenzy may be overdone – and that stock markets are due for a “drawdown”.
Goldman Sachs CEO David Solomon warns stock market ‘drawdown' will follow AI boo...
New York Post
New York Post
Goldman Sachs CEO David Solomon on Friday warned that an AI investment frenzy may be overdone – and that stock markets are due for a “drawdown”.
Goldman Sachs's CEO says he ‘sleeps very well' over the bull market, but a pullb...
Market Watch
Market Watch
David Solomon said the bull market for stocks doesn't keep him awake at night. But a reckoning will be coming for AI technology's winners and losers.
Preparing for a Market Crash? Put This AI Technology Stock on Your Watchlist Rig...
The Motley Fool
The Motley Fool
Investing in growth stocks means you need a strong stomach. Volatility is the price of admission for owning huge winners, and investors should expect drawdowns every so often from even the best stocks in their portfolios.
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