Goldman Sachs CEO David Solomon warned that global stock markets could face a “drawdown” within the next 12 to 24 months, following years of record highs fueled by AI-driven optimism.
Speaking at Italian Tech Week in Turin on Friday, Solomon said markets often “run ahead of potential” during major technological revolutions — comparing today’s AI boom to the dotcom bubble of the early 2000s.
“Whenever we’ve had a significant acceleration in new technology and capital formation, there are always winners and losers,” he noted. “I wouldn’t be surprised if we see a correction soon — a lot of capital will be deployed that won’t deliver returns, and when that happens, people won’t feel good.”
The AI boom has driven massive investments into firms like Microsoft, Alphabet, Palantir, and Nvidia, helping push Wall Street indexes to record highs despite market volatility linked to President Trump’s trade policies.
Solomon cautioned that investors are currently “out on the risk curve,” chasing optimism while downplaying potential risks. “There will be a reset — a check at some point. The extent will depend on how long this bull run goes,” he said.
He’s not alone in his concerns. Jeff Bezos recently described AI as being in an “industrial bubble,” while investor Leon Cooperman warned that markets are in the “late innings” of a bull run. Selwood Asset Management’s Karim Moussalem also likened the AI trade to one of the “great speculative manias” in history.
Still, Solomon ended on a positive note:
“I sleep very well. The technology is expanding, new companies are being formed, and its potential in the enterprise is enormous. It’s an exciting time.”