[Goldman Sachs: Record Sell-Off of Tech Stocks Last Week, AI Trading Shifts from Storytelling to Revenue Realization] BlockBeats reported on October 24th that Rich Privorotsky, Head of European Fixed Income and Equity Trading at Goldman Sachs, stated that last week saw the largest-ever sell-off of tech stocks on Goldman Sachs' prime brokerage books. The previously highly crowded "long AI, short everything else" trade is crumbling, as investors are demanding that AI companies prove their massive capital expenditures can translate into actual revenue. Privorotsky pointed out that the market expects AI capital expenditures to reach $1.1 trillion next year, but high investment alone is insufficient to support valuations. Cloud service providers also need to prove that orders can be converted into revenue and improve free cash flow. Meanwhile, AI infrastructure faces real constraints, with an estimated power shortage of 40 to 50 gigawatts next year, and highly leveraged cloud service providers also facing financing pressures. He believes that the world is shifting from "excess savings" to "excess spending," with AI investment and government fiscal deficits jointly driving up capital costs and weakening market risk appetite. Investors are currently concerned about both insufficient computing power supply and future overcapacity, posing a dual challenge to AI trading in terms of monetization and return on investment. Despite increased short-term risks, Privorotsky points out that spot computing power prices continue to rise, and demand remains strong; some heavily sold-off electrification, civil aerospace, and transportation assets are also beginning to show investment value. [Original Link]