The AI trade has been ‘sold to death’ but Goldman strategist highlights silver lining from Democratic sweep

A Goldman Sachs strategist has pushed back on the idea that the AI trade is finished, arguing that the recent selloff may obscure a potential catalyst: the U.S. political calendar. According to the strategist, the AI trade has been "sold to death," yet a Democratic sweep could produce an unexpected silver lining for the sector.

The reasoning centers on corporate decision-making. Rather than risk a new administration and different rules in 2029, companies may choose to accelerate plans to expand compute capacity and take advantage of the current status quo. In other words, political uncertainty further out could pull investment forward, supporting demand for AI infrastructure in the nearer term.

For investors, the takeaway is that AI spending is not solely a function of earnings momentum or sentiment — policy timing can shape capital allocation decisions too. What to watch: whether corporate capex guidance and data-center commitments show signs of acceleration, and how the political outlook evolves. Those signals will matter more than the trade's recent price action in testing the strategist's thesis.