Goldman Sachs says that companies spend a lot on artificial intelligence that they cut off shares bought operations

Companies routinely buy their own shares to motivate investors to stick to them; Reducing the number of arrows available leads to an increase in the arrow’s profitability and helps to enhance their stock prices.

Companies usually increase the purchase activity by about 20 % every year, according to a memorandum written by Ben Snider from Goldman. But in the second half of this year, the re -purchases of the S&P 500.

“S&P 500 companies reshape the shares at a record pace at 1H 2025, but the growth of re -purchases has recently stopped. Nafidiaand Microsoftand appleand alphabetand Amazonand DeadAnd Timing.

“Magnificent 7, which represents approximately 30 % of the total spending of the S&P 500, recorded 0 % re -purchases per year during a quarter,” Snyder wrote.

Snyder argues that re -purchases are suspended because the money goes to artificial intelligence. To date this year, “Amazon, Alphabet, Meta, Microsoft, and Oracle) published $ 368 billion in capital spending, and building their capabilities on artificial intelligence, Goldman is previously estimated.

“The increase in the AI’s CAPEX spending from the purchase compensation rate. Snider Books.

Goldman expects that the S&P 500 will begin to rise again next year by 12 % to $ 1.2 trillion, but the growth will be limited unless the capital expenditures are expanded.