The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions segments. The Global Banking & Markets segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and relationship lending, and acquisition financing, as well as secured lending, through structured credit and asset-backed lending and involved in financing under securities to resale agreements. This segment also offers client execution activities for cash and derivative instruments; credit and interest rate products; and provision of mortgages, currencies, commodities, and equities related products, as well as underwriting services. The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, wealth advisory services, personalized financial planning, and private banking services, as well as invests in corporate equity, credit, real estate, and infrastructure assets. The Platform Solutions segment offers credit cards and point-of-sale financing for purchase of goods or services. This segment also provides cash management services, such as deposit-taking and payment solutions for corporate and institutional clients. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.

Goldman Sachs Group, Inc. (The)

What Investors Should Know About a Company's Workforce

Key Points
Artificial intelligence (AI) is changing the way software traditionally operated, including for Figma and Adobe.
Adobe implemented its own AI platform and delivered record fiscal fourth-quarter revenue.
Figma is a newly public company that's weaving AI into its products, which helped it achieve 38% year-over-year sales growth.
Artificial intelligence (AI) is transforming many industries, including the software sector. According to Goldman Sachs, "(C)omputing is evolving from static, hard-coded logic to outcome-based assistants." This new paradigm sees software taking action to help users achieve their goals.
One field where AI is expected to deliver drastic change is design software. Two companies in the crosshairs are Figma (NYSE: FIG) and Adobe (NASDAQ: ADBE). The former is a newly public company that had its initial public offering (IPO) to much fanfare last July. The latter is an industry veteran that was set to acquire Figma a few years ago until European regulators sank the deal over antitrust concerns.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
AI can either help these companies succeed, or AI's ability to create impressive visuals with merely a prompt could threaten their businesses. To evaluate the situation and decide which is a better investment, here's a closer look at Adobe's and Figma's approaches to AI.
Adobe's AI adoption
Can artificial intelligence make Adobe's design software irrelevant? It's too early to tell, but the possibility exists now that AI lets anyone easily create images, videos, and other content without the need for separate software. This was enough to rattle Wall Street's confidence in the company's economic moat, contributing to a share price drop of more than 30% during the past 12 months.
For Adobe, the path forward is centered on folding AI into its offerings in a way that's compelling to customers. To that end, the company is pursuing several avenues to weave AI into its software stack.
This includes integrating with more than 25 different AI models, as well as launching the company's proprietary AI platform, Firefly, which was built with Adobe-owned images, along with public domain and openly licensed content to avoid copyright issues. Firefly delivers AI across Adobe's software suite, including Photoshop and Illustrator.
The AI capabilities helped the company drive up monthly active users by 15% year over year in its 2025 fiscal year, ended Nov. 28. As further proof of its success blending artificial intelligence into its solutions, management highlighted the fourth quarter's record number of customer bookings worth more than $1 million, and more than 25% year-over-year growth in customers spending at least $10 million in annual recurring revenue (ARR).
These results helped Adobe achieve record fiscal fourth-quarter revenue of $6.2 billion, up from $5.6 billion in the previous year. Its profits rose as well, with Q4 net income increasing to $1.9 billion from the prior year's $1.7 billion.
How Figma employs AI
Figma is aggressively pursuing a path to make AI an essential tool in the design industry. One way it's doing this is with the recent acquisition of start-up Weavy.
Weavy's tech brings together several AI models into a single interface, letting users apply the ones that work best for a task. It also layers on design tools that enable the user to refine AI's output. Combined, these features grant users the ability to collaborate with AI, going back and forth quickly to revise designs.
Along with the Weavy acquisition, Figma built its own AI tools, notably Figma Make. According to management, 30% of customers spending at least $100,000 in ARR use Figma Make weekly, with that usage increasing.
And the company partnered with OpenAI to bring its software into ChatGPT. Users enter prompts in ChatGPT to quickly generate diagrams, flowcharts, and presentations. This partnership extends Figma's reach and opens a channel through which to acquire more customers.
Figma's ability to attract and retain customers is driving sales growth. The software company reached record revenue of $274.2 million in the third quarter, representing a 38% year-over-year increase.
However, Figma wasn't profitable in the third quarter. It posted a net loss of $1.1 billion due to stock-based compensation related to its IPO.
Choosing between Figma and Adobe stocks
Figma's strong sales growth suggests it has successfully integrated AI into its software products so far. This is an appealing reason to consider buying its stock.
However, Adobe is also doing well. Wall Street's concerns over AI eroding its business haven't come to pass, based on fourth-quarter results that beat the average of analyst forecasts.
Another factor to consider in choosing between Adobe and Figma is share price valuation. Despite its stock price falling during the past several months, Figma's valuation remains elevated, as evidenced by its price-to-sales ratio (P/S).
The chart shows Figma's sales multiple is almost triple Adobe's, even though it has dropped significantly since its IPO. Moreover, Adobe's P/S sank during the past year, and given that the company continues to deliver excellent financial performance, the stock appears attractively valued.
Adobe's solid financials are a testament to the success of its AI efforts. Combined with its appealing valuation, it is the superior software stock to buy over Figma.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Robert Izquierdo has positions in Adobe and Figma. The Motley Fool has positions in and recommends Adobe, Figma, and Goldman Sachs Group. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better AI Software Stock: Figma vs. Adobe

Bank Profits Rise Amid Credit Card Uncertainty

Key Points
Nvidia and Palantir Technologies are collectively worth $4.9 trillion; Amazon and Alphabet could exceed that figure by the end of 2028.
Amazon's cloud AI services are driving revenue growth, and internal generative AI tools are making the company more profitable.
Alphabet's Google Cloud is gaining market share in cloud computing due in part to demand for custom AI chips and Gemini models.
Nvidia is the world's most valuable company, with a market capitalization of $4.5 trillion. Meanwhile, Palantir Technologies is worth $400 billion. That brings their collective valuations to $4.9 trillion. I think Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) can top that figure by 2028. Here's what that implies for shareholders:
Amazon is worth $2.6 trillion. The stock must add about 92% for the company's market value to hit $5 trillion. Reaching that level by the end of 2028 implies annual returns of 24% over the next three years.
Alphabet is worth $3.9 trillion. The stock must add about 28% for the company's market value to hit $5 trillion. Reaching that level by the end of 2028 implies annual returns of 9% over the next three years.
Here's what investors should know about Amazon and Alphabet.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
1. Amazon
Amazon is deploying artificial intelligence (AI) products and tools across its three core businesses -- retail e-commerce, digital advertising, and cloud computing -- to not only increase revenue, but also to improve profitability. Non-GAAP operating margin increased nearly 2 percentage points in the past year due in part to efficiency gains in the retail business driven by generative AI tools.
Amazon Web Services (AWS) dominates the cloud infrastructure and platform services market with 41% market share, according to Gartner. Cloud computing revenue growth accelerated to 20% in the third quarter as AWS continued to benefit from demand for AI. "AWS is where the preponderance of companies' data and workloads reside, and part of why most companies want to run AI on AWS," CEO Andy Jassy said.
Looking ahead, retail e-commerce sales are projected to increase at 10% annually through 2030, according to Straits Research. Ad tech spending is forecast to grow at 14% annually through 2030, according to Grand View Research. And cloud services spending is projected to increase at 22% annually through 2030, according to Goldman Sachs. That means Amazon has powerful growth drivers in its three core businesses.
Here's how Amazon can become a $5 trillion company by 2028: The Wall Street consensus says earnings will grow at 19% annually over the next three years, which makes the current valuation of 34 times earnings look reasonable. But Amazon beat the consensus estimate by an average of 23% in the last six quarters. If that continues, its market value could hit $5 trillion by late 2028 while the price-to-earnings (P/E) ratio drops to 33.
My forecast is aggressive, but Amazon has opportunities beyond its core businesses that make a $5 trillion market value more likely. Most notably, its autonomous driving subsidiary Zoox recently launched a ride-sharing service in Las Vegas and plans to enter three new U.S. cities in the coming months. If Zoox gains momentum, the market may afford Amazon a higher P/E multiple.
2. Alphabet
Alphabet's Google is the largest ad tech company in the world due to its ability engage internet users and collect data through platforms like Google Search and YouTube. While generative AI tools like ChatGPT are changing the search landscape, Alphabet is keeping pace with new features like AI Overviews and AI Mode (powered by its Gemini models).
The company has also introduced new AI-powered advertising tools, including the option to personalize ads in AI Mode. "Google's new ads feature will see it move a step forward from its AI rivals by enabling brands to offer highly personalized advertising through its chatbot, such as a discount code," according to The Financial Times.
Google is also the third largest public cloud in terms of infrastructure and platform services spending. It added a percentage point of market share in the past year, and that momentum could carry into future quarters due to its AI expertise. Forrester Research recently ranked Google as a leader in AI infrastructure, an area where the company has distinguished itself with custom AI chips and Gemini models.
Here's how Alphabet can become a $5 trillion company by 2028: The Wall Street consensus says earnings will grow at 15% annually over the next three years, which makes the current valuation of 32 times earnings look somewhat expensive. But Alphabet beat the consensus earnings estimate by an average of 14% in the last six quarters. If that continues, its market value could reach $5 trillion by 2028 while its PE ratio drops to 24.
Alternatively, Alphabet's market value could hit $6.7 trillion (implying about 70% upside) if the company maintains its current PE ratio of 32 . I think that is a plausible outcome because its autonomous driving subsidiary Waymo currently leads the market with commercial ride-sharing services in five U.S. cities.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 27, 2026.
Trevor Jennewine has positions in Amazon, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Goldman Sachs Group, Nvidia, and Palantir Technologies. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: 2 AI Stocks Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2028

Key Points
For robotaxies to be economical, remote operators must be able to handle far more vehicles than they currently do.
Mobileye has a new architecture that offloads some non-safety computations to the cloud, while keeping critical safety-related AI workloads in-vehicle.
The company believes this could drastically reduce the need for remote operators, an expensive component for any robotaxi business.
Robotaxis may very well be the future of transportation, but there's one critical problem that must be solved first. Goldman Sachs estimates that the current generation of robotaxis in service today requires one remote operator for every three cars. Remote operators are required to rescue robotaxis from situations the onboard AI can't handle. A December incident in San Francisco, where Waymo robotaxis snarled traffic after a power outage disabled traffic signals, is a reminder that robotaxis still have a long way to go.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Goldman Sachs sees reducing the costs associated with remote operators as a necessary requirement for the robotaxi business to flourish. It predicts that by 2030, a single operator should be able to handle 10 robotaxis simultaneously, rising to 35 by 2040. Reaching those levels will require some technological innovation.
One possible solution was outlined by Mobileye (NASDAQ: MBLY) during its fourth-quarter earnings call. The autonomous driving company thinks it has found a way to make remote operators largely unnecessary.
Pairing fast AI with slow AI
Mobileye CEO Amnon Shashua outlined the company's "fast-think, slow-think" architecture during theearnings call The key innovation is splitting the AI workloads involved in autonomous driving and potentially tapping cloud-based AI for deeper reasoning.
For safety-related decisions where every second counts, on-board computing resources must be used to reduce latency. In Mobileye's systems, the process of perceiving the environment occurs 10 times per second. If a pedestrian steps in front of a robotaxi, the robotaxi must detect the pedestrian and respond as quickly as possible.
For other issues, like deciding whether to wait for something blocking traffic to move or take a different route, decisions don't need to be made as quickly. These types of decisions also benefit from more powerful AI models that can't be stuffed into the limited computing resources available within the robotaxi itself.
Mobileye's architecture can call powerful vision-language models running in the cloud at a lower frequency to make more difficult decisions that aren't related to safety. Shashua noted that this strategy improves the mean time between interventions, and that powerful cloud-based models could replace remote operators "in many cases." If it works at scale, the economics of robotaxis could improve dramatically.
Gearing up for 100,000 robotaxis
Mobileye's fast-slow architecture will play a key role in the company's deal with Volkswagen to put 100,000 robotaxis on the road by 2033. Starting this year, the two companies are working toward removing safety drivers as a first step toward that audacious goal.
Mobileye's 8-year future expected automotive revenue pipeline now sits at $24.5 billion, up 42% over the past three years. While it will take years for the robotaxi industry to scale up, Mobileye's fast-slow architecture represents a key step toward making robotaxis economically viable and delivering that future revenue.
Should you buy stock in Mobileye Global right now?
Before you buy stock in Mobileye Global, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Mobileye Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 26, 2026.
Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Mobileye Global and recommends the following options: short February 2026 $9 puts on Mobileye Global. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Mobileye's New AI Architecture Could Solve a Problem Crushing Robotaxi Economics

(RTTNews) - Goldman Sachs Group, Inc. (GS) announced Friday that its chief executive officer, David Solomon, received an annual compensation of $47.00 million in 2025, up 20.5% from last year's $39 million.
In a regulatory filing, Goldman Sachs announced his compensation, citing continued and significant shareholder value creation during 2025, including shareholder return of 57%, 33% dividend growth, and over $17 billion returned to common shareholders.
According to the company, Solomon's total compensation included an annual base salary of$2 million, a cash component of $10.1 million, and the rest will be distributed across performance stock units of $31.5 million and carried interest program of $3.4 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Goldman Sachs CEO David Solomon's 2025 Compensation Rises 20.5% To $47 Mln

Key Points
Shares of Applied Digital have witnessed some volatility of late, but that shouldn't alarm investors with a long investing horizon.
Applied Digital is on track to generate solid lease revenue from its artificial intelligence (AI) data centers.
The company's ability to keep costs low and its enormous capacity pipeline suggest it could enjoy healthy revenue and earnings growth.
There's no denying that Applied Digital (NASDAQ: APLD) has been one of the hottest stocks on the market during the past year, rising almost 300% as of this writing. However, a closer look at recent stock price action shows it has been volatile.
Applied Digital stock witnessed a red-hot rally for the better part of 2025, hitting a 52-week high in mid-October last year. The stock has been seesawing since then and is trading about 13% below its 52-week high (as of Jan. 21). The shares also fell after the company's fiscal-second-quarter (ended Nov. 30) earnings release, when it reported a net loss of $19 million -- a big improvement from a year earlier.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Savvy investors, however, would do well to look past the recent stock price fluctuations in this artificial intelligence (AI) company for a very simple reason.
Applied Digital's growth story is just getting started
Applied Digital is known for designing, constructing, and managing data centers. The company is therefore operating in a booming industry experiencing rapid growth driven by AI. According to McKinsey, demand for AI-specific workloads in data centers is set to jump by 3.5 times between 2025 and 2030.
As a result, a total of 124 gigawatts (GW) of incremental AI data center capacity is expected to be added during this period. This clearly indicates that the need for Applied Digital's services will remain robust. More importantly, the company's business model will ensure that it not only benefits from the buildout of AI data centers, but also gets revenue from operating those data centers.
Applied Digital provides fit-out services for its tenants at two data center complexes it is building in North Dakota, constructing or customizing the data center as per their requirements. But first, it signs long-term lease agreements with tenants, typically hyperscalers and neocloud companies. Applied Digital has already leased out 600 megawatts (MW) of the data center capacity that it is constructing at its two campuses in the state.
These contracts point toward potential lease revenue of $16 billion during the next 15 years, in addition to the fit-out revenue. Importantly, Applied Digital has already started generating lease revenue by readying its first 100 MW data center for service. The company notes that it invested more than $1 billion in this data center. Extrapolating that cost to the 600 MW of data centers it is constructing suggests Applied Digital will spend more than $6 billion on construction.
The potential lease revenue it is likely to generate will be much higher than the cost of data center construction. Moreover, management noted on its January earnings call that it is focused on quickly building data centers and reducing construction costs. According to Chief Executive Officer Wesley Cummins:
Our current data center designs are modular and highly efficient, allowing us to run numerous concrete plants simultaneously and leverage prefabricated components delivered by 18-wheelers.
Another important point is that Applied Digital expects to increase its overall data center capacity to 5 gigawatts (GW) during the next five years. Management points out that it is working on three new data center campuses. Moreover, Applied Digital controls the land or has signed agreements with utility companies for 4.3 GW of capacity, indicating that the company has the potential to grow significantly.
The stock is expensive, but investors shouldn't miss the bigger picture
Applied Digital stock is trading at an expensive 33 times sales. However, its impressive growth trajectory justifies that valuation.
Additionally, investors shouldn't forget that Applied Digital serves a market where demand far exceeds supply. According to Goldman Sachs, data center demand will exceed supply by 10 GW on average during the next three years. So, we should see Applied Digital winning more contracts from hyperscalers and infrastructure providers to design, develop, and deploy additional data centers.
We have already seen that the company anticipates $15 billion in lease revenue from the 600 MW of capacity it has already leased out, suggesting it will generate $25 million in lease revenue per MW. For comparison, it is spending between $11 million and $13 million to build each MW of capacity.
So, Applied Digital has the potential to become a profitable company in the long run, which is why savvy investors should look past the recent volatility and continue holding this AI stock in their portfolios, as it plays a key role in the proliferation of this technology.
Should you buy stock in Applied Digital right now?
Before you buy stock in Applied Digital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Digital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,340!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,789!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 23, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Applied Digital Stock Has Been Volatile, but the Long-Term Setup Looks Compelling

Key Points
Generative AI is one of the most impressive technologies in recent memory, but it isn't a magic bullet.
Investors are getting less patient with artificial intelligence (AI) spending that doesn't show results.
History doesn't repeat itself, but it certainly it helps you see patterns -- especially in financial markets, which are characterized by booms and busts driven by macroeconomic factors like the business cycle and interest rates. After gaining a whopping 79% during the past five years, the S&P 500 (SNPINDEX: ^GSPC) might be too pricey based on some valuation metrics. Let's dig deeper to decide how this story may play out during the coming months.
AI-related spending looks unsustainable
The launch of OpenAI's ChatGPT in late 2022 set off a technology boom on a level not seen since the internet took off in the late '90s and early 2000s. Companies are scrambling to stay relevant in the market for training and running large language models (LLMs), which means spending huge sums on artificial intelligence (AI) chips and other compute hardware.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Analysts at Goldman Sachs estimate that cloud computing giants may spend an eye-popping $500 billion on AI hardware in 2026 alone. And the data center buildout will likely be responsible for a significant percentage of GDP growth this year.
There are several alarm bells about this trend. For starters, these companies are spending hundreds of billions on depreciating hardware, such as graphics processing units (GPUs), which will eventually fail or become obsolete as technology improves. Depreciation could be a long-term drag on corporate earnings if the AI investments don't meet expectations. And so far, the technology isn't translating to huge gains for many of the companies involved.
Where are the profits?
So far, the generative AI boom has played out similarly to the California gold rush, where the people making most of the money were selling picks and shovels instead of mining gold. The biggest winner has been AI chipmaker Nvidia, whose third-quarter earnings rose 62% year over year to $57 billion, while profit soared 65% to $31.9 billion.
However, not every company has the same experience. The Economist believes OpenAI could burn through as much as $17 billion in cash in 2026. And the company's planned initial public offering (IPO) in the second half of the year could bring investors face to face with the alarming economics behind the AI hype. They might not react well to what they see.
Oracle could be a harbinger of what comes next. Shares of the data specialist are down roughly 52% from their all-time high as the market contrasts its debt-fueled data center spending with lackluster operating performance.
To put these numbers in perspective, Oracle's top line only grew by 14% year over year to $16.1 billion. And it plans to make $50 billion in capital expenditures this year.
In 2026, expect the market to become less patient with AI spending that doesn't show results. And that could lead to a widespread retreat in technology stock valuations.
One valuation metric flashes a warning not seen in decades
Investors face some serious challenges this year as the economy grapples with potentially unsustainable AI data center spending. And if history is anything to go by, the S&P 500 may be due for a correction.
The cyclically adjusted price-to-earnings (CAPE) ratio is a market valuation metric that divides the current price of the S&P 500 by its average inflation-adjusted earnings during the past 10 years. It's designed to smooth out factors like inflation and the business cycle to give investors an idea of whether stocks are cheap, fairly valued, or expensive. Right now, it stands at about 40 -- a level not seen since the dot-com bubble and far above its long-running average of just 17.33.
Historically, CAPE ratios don't stay this high for long. And investors should consider shifting away from richly valued technology stocks that might be highly exposed to potential downside.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,340!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,789!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 23, 2026.
Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Nvidia, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Stocks Crash in 2026? Here Is What History Suggests.

Key Points
Though quantum computing is still a nascent technology, it could take off in the long run, sending one of the stocks discussed in this article soaring.
Heavy AI infrastructure spending will be a tailwind for the other two stocks discussed in this article.
The U.S. stock market has been in bull territory for more than three years now. The S&P 500 index has gained an impressive 94% since the ongoing bull market started on Oct. 12, 2022, and the index is likely to head higher in 2026.
Deutsche Bank, for instance, sees the S&P 500 reaching 8,000 by year-end, a potential 15% jump from current levels. Meanwhile, Goldman Sachs is anticipating a 12% rally in the S&P 500 index this year. Investors can therefore consider putting their investible cash into the stock market now, as the impending rally could help them get richer in 2026 and beyond.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
If you have $1,000 in investible cash after meeting your expenses, clearing high-interest debt, and saving enough money for tough times, consider allocating that money to the following stocks based on your risk profile. In my opinion, these names seem like solid bets to capitalize on the broader stock market rally this year and in the long run.
This growth stock can help investors benefit from a disruptive technology
Quantum computing is a nascent technology right now, but it is expected to grow by leaps and bounds in the long run, as it could outperform traditional computers exponentially. McKinsey predicts that the quantum computing market's revenue could jump from $4 billion in 2024 to a whopping $72 billion in 2035.
IonQ (NYSE: IONQ) is one way to tap this potentially lucrative opportunity. The company is in the business of designing and manufacturing quantum computers, and it also provides quantum computing services through major cloud service providers. Though it's very small right now, IonQ has been growing at an incredible pace.
Its revenue in the first nine months of 2025 more than doubled year over year to $68 million, with Q3 revenue alone increasing by a whopping 222%. IonQ has been focused on enhancing the accuracy of its quantum computing systems. The company reported in October last year that it achieved a world record 99.99% two-qubit gate performance, a metric that measures the accuracy of a quantum computing system.
This achievement is impressive, as a 99.99% fidelity suggests that its quantum computing system is almost error-free, pushing the technology toward mainstream adoption. As a result, IonQ's quantum computers are likely to be more accurate and cost-effective. IonQ claims that its cost per system is 30x lower than that of rival offerings.
So, investors looking for a growth stock to add to their portfolios could consider allocating some of their $1,000 corpus toward IonQ. However, the stock is expensive right now, trading at 158 times sales, and is prone to volatility. But then, investing a small amount of money in this stock may pay off in the long run, given its remarkable growth and the prospects of the quantum computing market.
AI infrastructure spending makes these stocks a no-brainer buy
Artificial intelligence (AI) infrastructure stocks have been solid bets for investors in recent years, which isn't surprising given the huge spending in this sector. Gartner anticipates a 41% spike in AI infrastructure spend in 2026 to $1.4 trillion.
That's why it would be a good idea to buy shares of Celestica (NYSE: CLS), a company providing design, engineering, manufacturing, and supply chain management solutions to several industries. The connectivity and cloud solutions business is one of Celestica's key segments, which is benefiting from the enormous investments in AI infrastructure.
Specifically, Celestica is designing and manufacturing networking components that go into AI accelerator chips manufactured by companies like Broadcom, Marvell Technology, AMD, and Intel. Additionally, it develops and builds rack-scale networking solutions for hyperscalers deploying AI data centers. So, it is easy to see why Celestica's revenue jumped by an estimated 27% in 2025 to $12.2 billion. Importantly, the forecast for the next couple of years points toward an acceleration.
With the stock trading at just 3.2 times sales, buying Celestica is a no-brainer right now with your investible cash, as its accelerating growth could lead to significant gains on the stock market.
Meanwhile, Micron Technology (NASDAQ: MU) is another top AI stock that you can buy right now at attractive levels. It is trading at less than 10 times sales despite clocking stunning growth.
Even the forward earnings multiple of 11 is quite cheap. Consider that Micron's earnings could jump by nearly 4x in the ongoing fiscal year on the back of a 100% increase in sales. Importantly, the key factor driving Micron's red-hot growth is sustainable, as there is a shortage of memory chips used in AI data centers, smartphones, computers, and other applications.
Memory chip prices have taken off as demand has been outpacing supply, a trend that's likely to continue through 2028. Though Micron and other memory chipmakers are bringing online more capacity, adding new facilities takes time. This unavoidable delay could lead to persistently higher memory prices in the future, especially given the strong demand for high-bandwidth memory in AI data centers.
So, Micron looks like an unmissable value stock you may want to buy right now, as it can fly higher following its 243% gains over the past year, primarily driven by favorable memory market dynamics and its attractive valuation.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,340!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,789!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 22, 2026.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Celestica, Goldman Sachs Group, Intel, IonQ, and Micron Technology. The Motley Fool recommends Broadcom, Gartner, and Marvell Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Stocks to Buy With $1,000 Right Now

Key Points
Goldman Sachs is one of the best, if not the best, investment banks in the world.
The company advises on mergers and acquisitions (M&As), helps companies go public, and has a large trading desk, among other businesses.
The stock's valuation has risen on hopes of a strong year in M&As and IPOs.
Despite some hiccups along the way, Goldman Sachs' (NYSE: GS) stock has been on an absolute tear in recent years. The stock is up over 232% in the past five years and over 51% in the past year.
If you haven't heard of Goldman Sachs before, the big thing to know is that it's one of the oldest and most prominent investment banks, meaning it advises companies on mergers and acquisitions (M&As) and initial public offerings (IPOs). Goldman also helps companies raise debt, and has a strong fixed-income and equities trading desk.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Market conditions can play a big role in dictating Goldman's performance. When interest rates are low and market conditions are favorable, there can be more M&As and IPOs, leading to higher fees for Goldman. Prior to 2025, the environment was less friendly, as a tougher regulatory regime slowed large-scale M&As and higher rates all but froze IPO activity.
But in 2025, whether due to the election of President Donald Trump, who ushered in a friendlier M&A environment, or lower interest rates, both IPOs and dealmaking activity picked back up significantly. Investors also have high hopes for 2026, especially amid rumors of major IPO candidates such as OpenAI and SpaceX.
Should investors buy, sell, or hold Goldman Sachs in 2026?
The company trades at a high valuation
Whether on a price-to-tangible-book-value basis, which is a more common valuation metric for banks, or on a forward price-to-earnings basis, the big run in the stock has certainly led to higher valuations.
Now, Goldman has improved operationally in recent years as well. Not only did it abandon a big consumer lending push that was consuming capital and producing poor returns, but the company is also selling down its on-balance-sheet alternative investment holdings, such as private equity and real estate, that will make the company more capital efficient.
On Goldman's recentearnings call CEO David Solomon said the company is also considering entering prediction markets. The company currently has a team studying these options and seeing where they might integrate well with Goldman's current businesses.
Overall, the stock's valuation is high, but deservedly so, given that this should be another big year of M&As and IPOs. I think current investors can hold the stock for now, though I'm not recommending a buy at this time due to valuation. However, investors should consider buying the stock on potential dips.
Should you buy stock in Goldman Sachs Group right now?
Before you buy stock in Goldman Sachs Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goldman Sachs Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,340!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,789!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 22, 2026.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

	S/L 5%RUB 976.21	S/L 10%RUB 1,022.69	S/L 15%RUB 1,069.18
Day	1.19%	0.00%	0.00%
Week	26.09%	1.67%	0.03%
Month	58.33%	24.28%	7.84%

Goldman Sachs Group, Inc. (The)

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels