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Moses Sternstein's avatar
Moses Sternstein
Dec 30
Random Walk

$24T in market cap has already been pulled forward.

But, GS estimates $8T in AI revenues. At 20% margins, that’s ~$1.6T in profits. $16T in profits at 22x P/E = $35T in AI market cap to be created.

With $35T in total, and $24T already priced-in, that leaves $11T for the taking.

$35T > $24T, leaving ~$11T in market cap gains, yet to be captured by current prices. That’s $11T in equity value lying on the table, based mostly on revenue assumptions from the AI build-out itself, i.e. the money that the hyperscalers are spending, and less-so the money that will be spent on the hyperscalers by their customers.
Moses Sternstein
Dec 30
at
2:12 PM

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