One signal

AI-related shares remain attractive despite rising government bond yields, Goldman Sachs strategist Timothy Moe said, according to Bloomberg.

Why it matters

The comment matters because higher yields usually make expensive growth stocks less appealing by increasing the return investors can demand elsewhere. Moe’s “stronger-for-longer” view says the AI trade may still have enough earnings momentum to absorb that pressure. It is an outlook, not a forecast carved into the market floor. Investors still have to decide whether AI profits can keep outrunning borrowing costs and lofty expectations. The machines may be clever, but the bond market continues to ask for receipts.

Discuss: If bond yields stay high, should investors trust AI earnings growth to justify current valuations, or is this the point where enthusiasm becomes risk?

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